Audit Quality, Board Dynamics, and Tax Strategies: Unraveling the Connections in Pakistan’ Corporate Sector

Abstract

This study aim is to examine the effect of Demographic characteristics of the board of directors (Women on corporate board, Board size, Auditing firm, Size of a firm, Leverage and return on equity) on Tax Avoidance using a sample of30 big firms from different sectors listed in the stock exchange of Pakistan from 2010 to 2019. The study uses secondary data taken from the Balance Sheet of firms and SCS trade. To analyze the data, the Panel data regression model used to observe the result of the demographic characteristics of the board of directors on tax avoidance. The results indicate that a firm audited by Big-4 reduces the corporate tax avoidance. Additionally, firms with a larger size of board of directors are associated with more tax avoidance. However, the presence of women on the board of directors does not reduce the corporate tax avoidance.

Keywords

• demographic characteristics
• board of director’s size
• tax avoidance evasion