Publication: Corporate Governance, Corporate Tax Avoidance, And Firm Value In Bangladesh: The Moderating Role Of Audit Timeliness
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Date
2025-05
Authors
Islam, Md Nazrul
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Abstract
The primary purpose of this research is to examine whether good corporate governance contributes to reducing corporate tax avoidance and whether corporate tax avoidance (cta) contributes to decreased firm value in the context of an emerging economy like bangladesh. It has used a panel data set of 470 firm-year observations collected from 111 non-financial companies listed on the dhaka stock exchange from 2016 to 2020. Using the appropriate panel data regression method, the study finds that board gender diversity reduces cta. However, board meeting attendance, audit committee independence, board independence, and managerial ownership do not affect cta. The study also finds that corporate tax avoidance reduces firm value. Most importantly, it is among the first empirical studies that find audit timeliness, as a moderator, reduces the adverse effect of cta on firm value. The study also adopts a series of robustness tests. Moreover, the study has evaluated corporate tax avoidance behaviour from the agency theory and stakeholder theory perspective rather than the traditional view of tax burden-reducing strategy. In the current position, when the cta is gradually increasing, and the value of listed firms in bangladesh is gradually deteriorating over the recent years, the study documents that good corporate governance could decline cta, and a reduction in cta could enhance the firm value.
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Keywords
Corporate Governance , Corporate Avoidance , Value Bangladesh: