This study aims to examine the relationship between Board of Director’s characteristics and tax
aggressiveness. Taxes are considered an additional cost to the firm and its
shareholders because these taxes reduce the available cash flow. Firms tend to
employ different tax aggressiveness techniques. Aggressive tax planning or
strategic tax behaviors are activities generally designed to reduce tax
liability that includes Tax
evasion, Tax evasion and legitimate saving of taxes. This study is the first in
Jordan which tests the
relationship between Board of Director’s
characteristics (Board Duality, Board Composition and Board Independence) on
tax aggressiveness. Based on a sample of 140 Jordanian firms during the period
2013-2017, this study used regression analysis to examine the effect of board
composition, board independence, CEO duality, return on assets (ROA) and firm
size on the tax aggressiveness. The study found that there is a negative
relationship between board composition and board independence from one side,
and the tax aggressiveness from the other side. Furthermore, the study found
that there is a positive relationship between board duality and tax
aggressiveness. Finally, both the return on assets (ROA) and the firm size
variables, which were included as control variables, were found to be
positively related to the tax aggressiveness.
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