Women on the board of directors and corporate tax aggressiveness in Australia: An empirical analysis

Grant Richardson*, Grantley Taylor, Roman Lanis

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

22 Citations (Scopus)

Abstract

Purpose - This paper aims to investigate the impact of women on the board of directors on corporate tax avoidance in Australia. Design/methodology/approach - The authors use multivariate regression analysis to test the association between the presence of female directors on the board and tax aggressiveness. They also test for self-selection bias in the regression model by using the two-stage Heckman procedure.

Findings - This paper finds that relative to there being one female board member, high (i.e. greater than one member) female presence on the board of directors reduces the likelihood of tax aggressiveness. The results are robust after controlling for self-selection bias and using several alternative measures of tax aggressiveness.

Research limitations/implications - This study extends the extant literature on corporate governance and tax aggressiveness. This study is subject to several caveats. First, the sample is restricted to publicly listed Australian firms. Second, this study only examines the issue of women on the board of directors and tax aggressiveness in the context of Australia.

Practical implications - This research is timely, as there has been increased pressure by government bodies in Australia and globally to develop policies to increase female representation on the board of directors.

Originality/value - This study is the first to provide empirical evidence concerning the association between the presence of women on the board of directors and tax aggressiveness.

Original languageEnglish
Pages (from-to)313-331
Number of pages19
JournalAccounting Research Journal
Volume29
Issue number3
DOIs
Publication statusPublished - 1 Jan 2016
Externally publishedYes

Keywords

  • Board of directors
  • Corporate governance
  • Corporate tax avoidance
  • Gender

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