Board risk oversight and corporate tax-planning practices

Mark S. Beasley, Nathan C. Goldman, Christina M. Lewellen, Michelle McAllister

Research output: Contribution to journalArticlepeer-review

3 Scopus citations

Abstract

Risk oversight by the board of directors is a key component of a firm’s enterprise risk management framework, and recently, boards have paid more attention to their firm’s tax-planning activities. In this study, we use a hand-collected sample of proxy statement disclosures about the board’s role in risk oversight and provide evidence that risk oversight is negatively associated with both tax uncertainty and overall tax burdens. We find that risk oversight is most strongly associated with positions that yield permanent tax benefits and also with less risky taxplanning activities. Overall, the evidence suggests that board risk oversight is associated with more effective taxplanning practices.

Original languageEnglish (US)
Pages (from-to)7-32
Number of pages26
JournalJournal of Management Accounting Research
Volume33
Issue number1
DOIs
StatePublished - Mar 1 2021
Externally publishedYes

Keywords

  • Board risk oversight
  • Enterprise risk management
  • Tax-planning levels
  • Tax-planning practices
  • Taxplanning volatility

ASJC Scopus subject areas

  • Business and International Management
  • Accounting

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