Government ownership, corporate governance and tax aggressiveness : Evidence from China

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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Original languageEnglish
Pages (from-to)1029-1051
Journal / PublicationAccounting and Finance
Issue number4
Online published5 Sep 2013
Publication statusPublished - Dec 2013


This study investigates how government ownership and corporate governance influence a firm's tax aggressiveness. Using Chinese listed companies during 2003-2009, we find that compared with government-controlled firms, non-government-controlled firms pursue a more aggressive tax strategy. In particular, non-government-controlled firms with a higher percentage of the board shareholdings and with a CEO who also serves as the board chairman are more aggressive. For government-controlled firms, we find that board shareholding has an impact on tax aggressiveness and it does not differ between local and central government-controlled firms. However, local government-controlled firms in less developed regions where the implementation of corporate governance measures is generally less effective are more tax aggressive than those in other regions. © 2013 AFAANZ.

Research Area(s)

  • Corporate governance, Government ownership, Tax aggressiveness