Board structure, executive attributes and corporate tax avoidance: a systematic literature review

Mohammed Baba Yahaya, Elaine Yen Nee Oon and Ruzita Jusoh

Asian Review of Accounting, 2025, vol. 34, issue 1, 1-29

Abstract: PurposeThis paper aims to review the current academic research on the effects of various elements of board structure and executive attributes on corporate tax avoidance. Specifically, the paper discusses seven board characteristics: board size, independence, CEO duality, gender diversity, interlocking directors, board committees and executive attributes.Design/methodology/approachA sample of 46 empirical studies on the board attributes–tax avoidance relationship published between 2010 and 2023 was collected from the Web of Science database using the systematic review method. The articles were analyzed based on journal distribution, yearly trends, country distribution, theoretical perspectives, econometric models and the findings of the prior studies.FindingsWe find that the studies yielded mixed and conflicting results. Similarly, most articles concentrated on a single-country context; consequently, the interaction between board attributes and countries’ institutional factors remains largely understudied. We also find that theoretical perspectives other than agency theory have been sparsely applied.Research limitations/implicationsThis paper comprehensively reviews and updates the current state of academic research on the board attributes–tax avoidance relationship by answering the following four questions: (1) Where is the research relating to the effect of board and executive characteristics on tax avoidance? (2) How is the research conducted? (3) What theoretical perspectives are used to predict the interplay between board and executive characteristics and tax avoidance? (4) What are the characteristics of the board and executive that are empirically related to tax avoidance? While the articles examined advance the literature on the corporate governance–tax avoidance relationship immensely, our review highlights some weaknesses of these empirical studies and offers suggestions for future research.Practical implicationsThe review is important for regulators as it highlights how the personality traits of top executives can influence corporate tax policy. Consequently, this understanding can assist regulators in identifying potential factors that lead to tax revenue loss and in developing effective regulations for corporate tax reporting by taking into account top executives’ personality traits.Social implicationsBecause corporate tax avoidance has reached a global scale, this paper will help policymakers and regulators understand the need to introduce additional anti-tax avoidance rules to curb the phenomenon. Policymakers can also consider implementing targeted policy reforms aimed at aligning corporate tax incentives with broader societal objectives, such as promoting social equity, economic growth and sustainability.Originality/valueThis paper updates and extends previous reviews on the board attributes–tax avoidance relationship. More importantly, the paper provides possible avenues for future research.

Keywords: Corporate tax avoidance; Board structure; Executive attributes; Systematic literature review; Corporate governance (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:arapps:ara-09-2023-0245

DOI: 10.1108/ARA-09-2023-0245

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