Tax planning, corporate governance and equity value

摘要: Tax planning by firms is a highly significant activity. After audit fees, tax related services are the largest source of fee income for UK accounting firms. When viewed in terms its impact, major corporation gap amongst large (HMRC, 2010). Although traditionally has been as benefiting shareholders via increased after earnings, more recently underlying motivation questioned. Desai and Dharmapala (2006) argue that when an information asymmetry exists between managers with respect to planning, it can facilitate acting their own interests resulting negative association firm value. Using sample quoted from 2005 2007 data drawn International Accounting Standard 12 Income Taxes ( IASB, 2010) Effective Rate (ETR) reconciliations, this paper reports such relationship. Further, relationship robust inclusion corporate governance measures which could be expected moderate potential implications shareholder–manager asymmetry. An innovation using ETR reconciliations examine sub-categories activities. The contributes debate who determines, benefits conducted Its findings have direct policy relevance administrations monitoring controlling firms’