Impact of Board Attributes on Tax Avoidance: Evidence from Entrepreneurial Corporate Ventures

Abstract

The purpose of this paper is to empirically examine the women on corporate board along with the number of board of directors on corporate board affecting the tax avoidance strategies in a corporation. It shows the impact of the board attributes on the corporation tax liability which can further improve the transparency of financial reporting of the corporate firms. To be specific, it will also help the Government that how the human resources are being catered at an optimal level at higher level of organizations and how rigorous are such firms following the taxation rules and regulations set by State. The sample includes 438 observations from 73 entrepreneurial corporate venturing listed in KSE-100 Index spanning the period over 2015-2020 and the research hypothesis was tested using panel data technique on regression model using STATA software. The results for the study indicate that women present on the corporate board can reduce the tax avoidance practices by the corporation. Moreover, firms that have large number of board of directors in the corporate board tend to avoid more taxes. The findings of this study do expand the extant literature and guide the potential investors, capital market regulators and tax related authorities for making informed decisions in relation to the listed companies in KSE-100 Index. This study caters the research gap of the attributes of the corporate board and its effect on tax avoidance