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Government ownership, corporate governance and tax aggressiveness : evidence from China
Accounting and Finance
  • Koon Hung CHAN, Department of Accountancy, Lingnan University
  • Lai Lan, Phyllis MO, Department of Accountancy, City University of Hong Kong
  • Amy Y. ZHOU, PricewaterhouseCoopers, Hong Kong
Document Type
Journal article
Publication Date
  • Corporate governance; Government ownership; Tax aggressiveness
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.
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Citation Information
Chan, K. H., Mo, P. L. L., & Zhou, A. Y. (2013). Government ownership, corporate governance and tax aggressiveness: Evidence from China. Accounting & Finance, 53(4), 1029-1051. doi: 10.1111/acfi.12043