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Audit Committee and Tax Avoidance Behavior
|關鍵字:||審計委員會;避稅;審計委員會規模;audit committee;tax avoidance;audit committee size||Project:||台灣管理學刊, Volume 18, Issue 1, Page(s) 23-43||摘要:||
Tax burden is one of the major costs of a company since tax payment will reduce the cash flow available to it and its shareholders. This motivates a company to engage in tax planning aggressively. However, the tax avoidance behaviors not only increase the risk of committing penalties but harm the reputation of a company, causing its stock price to fall. On January 1,2007, the authority started to allow the listed companies in Taiwan to set up either the audit committee or supervisors. Different from the scheme of supervisors, that of the audit committee requires all directors in the audit committee to be independent and at least one of them shall have financial expertise and exercise the rights to vote and monitor as the board of directors. The results of this study shows that companies voluntarily forming the audit committee will less engage in aggressive tax avoidance than a company that doesn't voluntarily form the audit committee. Second, after companies form audit committee voluntarily, companies engage in less tax avoidance behavior. Third, the audit committee size affects the corporate tax avoidance behavior. The importance of this paper is this is the first paper to explore the relationship between the audit committee and tax avoidance of a company. The results provide an index for the authority to refer when it executes the auditing and help companies understand the importance of the establishment of the audit committee.
|Appears in Collections:||臺灣管理學刊 第18卷 第01期|
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