The influence of managerial equity incentives and corporate governance on tax avoidance of publicly-listed companies in the Philippines subject to regular corporate income tax

• Main Authors: Dalumpines, Angelika F., Portugal, Pinky Mae., Tagapan, Gebran T., Tan, Danielle Brianna G.
• Format: text
• Language: English
• Published: Animo Repository 2016
• Subjects: Tax incentives > Philippines; Tax evasion > Philippines; Corporate governance > Philippines; Accounting
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/9207
• Institution: De La Salle University

Empirical evidence supports the argument that shareholders value tax avoidance. In the Philippines, where tax rates are high, incentives are created by the board of directors in the pursuit of such. Since inconsistent results regarding tax avoidance and corporate governance and managerial incentives are reached by prior research, the researchers then determine the relation between managerial equity incentives in the form of stock ownership, delta, and vega corporate governance with its representatives financial expertise, and independence, and tax avoidance in the Philippine setting. Results indicate that stock ownership and independence affect the level of tax avoidance undertaken by managers. Moreover, these findings indicate that incentives have a stronger effect at higher levels of tax avoidance.