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The effect of board characteristics on tax aggressiveness: the case of listed entities in Sri Lanka

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dc.contributor.author Shamil, Mohamed Mihilar
dc.contributor.author Gooneratne, Dulni Wanya
dc.contributor.author Gunathilaka, Dasitha
dc.contributor.author Shaikh, Junaid M.
dc.date.accessioned 2023-11-20T04:55:18Z
dc.date.available 2023-11-20T04:55:18Z
dc.date.issued 2023
dc.identifier.citation Shamil, Mohamed Mihilar; Gooneratne Dulni Wanya; Gunathilaka Dasitha; Shaikh Junaid M. (2023). The effect of board characteristics on tax aggressiveness: the case of listed entities in Sri Lanka, Journal of Accounting in Emerging Economies, Emerald Publishing Limited en_US
dc.identifier.uri http://repository.kln.ac.lk/handle/123456789/27053
dc.description.abstract Purpose – This study examines the effect of board characteristics on the tax aggressiveness of listed companies on the Colombo Stock Exchange in Sri Lanka. Design/methodology/approach – The sample consists of 264 firm-year observations of non-financial listed companies in Sri Lanka from 2014 to 2019. The dynamic panel system GMM technique was used to test the hypotheses, and further analyses were performed using the propensity score matching technique. Findings – All four effective tax rate measures’ mean values were lower than the statutory tax rate, indicating the likelihood of tax planning. Whether board attributes are likely to mitigate tax aggressiveness is uncertain because the results are inconsistent and depend on the ETR measure. Similarly, the logistic regression results derived using the PSM approach are inconsistent, suggesting that board characteristics may have a limited effect on tax aggressiveness. Hence, the corporate governance-tax aggressiveness nexus is limited in the case of Sri Lanka. Research limitations/implications – This investigation is limited to non-financial listed companies in Sri Lanka and incorporates only four tax aggressiveness measures. Findings are imperative for policymakers, regulators, and professional bodies to improve corporate governance codes and rules to enhance organizational transparency toward corporate tax payments. Social implications – Aggressive tax planning by companies will reduce government tax revenue, hinder social progress, and cause public mistrust of large corporations and institutions. Originality/value – This study provides insight into the nexus between corporate governance and tax aggressiveness in a middle-income economy in South Asia hit by an economic crisis where tax revenue has fallen and tax enforcement is weak. en_US
dc.publisher Emerald Publishing Limited en_US
dc.subject Board characteristics, Corporate governance, Dynamic panel, Effective tax rate, Propensity score, Tax aggressiveness en_US
dc.title The effect of board characteristics on tax aggressiveness: the case of listed entities in Sri Lanka en_US


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