The moderating role of the board of directors’independence on the relationship between financial transparency and tax avoidance

This study examines how independent directors affect the connection between financial transparency and tax avoidance in 104 French companies listed on the SBF120 from 2011 to 2020. Panel data analysis reveals that low financial transparency is associated with increased tax avoidance. Moreover, the inclusion of independent directors on boards substantially moderates this association. This is demonstrated through the analysis of three tax avoidance metrics: the current effective tax rate, cash effective tax rate, and book-tax difference.

Department

Finance

Publisher

inderscience

Sponsor

NA