Exploring the Link between Corporate Governance Characteristics and Effective Corporate Tax Rate:

We blend the corporate governance and corporate taxation literature streams to study the association between board, abreast CEO characteristics, and effective corporate tax rate. We have tried to sweep a broad brush over a large number of different econometric techniques that are relevant to the analysis of financial data. Using a sample of 50 companies, mainly from the technology area, listed at NASDAQ and component of Dow Jones index, over the period 2000- 2013, the empirical approach employs panel least squares and quantile regressions, as well as robustness checks by means of estimated generalized least squares, generalized linear model, and generalized method of moments. We find that board independence and board size have a statistically significant negative impact on effective corporate tax rate. It is also important to note that board independence Granger cause corporate taxation. Regardless of its robustness, CEO ownership reveals a mixed influence: positive for quantiles between 0.3-0.5 and negative at the 0.9 quantile. We also find a mixed relationship between CEO tenure and corporate taxation.

Vintilă Georgeta, Păunescu Radu Alin, Ghergina Ştefan Cristian (2016). Exploring the Link between Corporate Governance Characteristics and Effective Corporate Tax Rate: A Panel Data Approach on U.S. Listed Companies. Journal of Financial Studies & Research, Vol. 2016, Article ID 857506, 16 pagini, ISSN 2166 - 000X, DOI: 10.5171/2016.857506; Journal indexed in international databases: EBSCOhost: Business Source Complete, ProQuest, Cabell's Directory, Ulrich's Periodicals Directory, Media Finder, J-Gate şi altele.