How corporate governance'structures influence tax planning strategies?

Cristina Sá, Helena Alves


Structured abstract


The main purpose of this paper is to discuss the role corporate governance characteristics has in tax planning decisions by revisiting the main empirical literature in the last years.



Firstly, we discuss concept of corporate governance and its attributes. After, we analyse the concept of tax planning. Finally, we present some of the main conclusions of recent empirical studies. As the separation of management and ownership was identified as the basic corporate governance conflict, tax rules should be a way that assure that management behavior is not in conflict with the other stakeholders.



Recent literature suggests that the link between corporate governance and tax planning can generate new insights into the real relation of tax planning and the attributes of corporate governance. In some studies taxes have been treated only as market imperfections that influence capital structure and dividend policies, while other authors have incorporated the possibility of agency problems in their analyses.  In our analysis we conclude that corporations with smaller boards of decision-makers seem to be more risky averse and so less willing to carry out tax planning strategies. Also we highlight that tax planning activities can induce to a reduction on the market value of firms.


This paper added value relies on a systematic analysis of the literature about corporate governance structures and tax planning activities.


Keywords: Tax planning; corporate governance; management; ownership.

Article Classification: Literature review

Full Text:



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