Information Transparency Consequences of Governance Quality and Corporate Tax Aggressiveness: Evidence from XBRL Avoidance

Tax Governance

Complementarity Theory

Tax Aggressiveness and
Corporate Transparency

Tax aggressiveness leads to transparency problems

Corporate transparency reduces tax avoidance

Role of governance in shaping transparency

Governance improves corporate transparency

Corporate transparency reduces XBRL Avoidance

Tax Equilibrium View

Governance curbs extreme tax planning

Tax planning and managerial diversion are complementary

Assumption: Complementarity leads to transparency problems

Governance and external monitoring curbs opportunism, aggressive tax planning, and asymmetry

Tax aggressive companies reduce tax-related transparency problems

Demand for corporate transparency is high in weakly governed tax-aggressive firms

Contribution, Novelty, and Originality

Less studied aspects

Novelty and Originality

Impact of Tax aggressiveness on corporate transparency

Governance quality and transparency

Diversion assumption

Contribution

XBRL setting aligns with the concept transparency

Clear definition of transparency

How tax aggressivness influence corporate transparency

How governance impacts corporate transparency

The exposition of managers' underlying tax planning motives

IRS Detection Risk in the context of transparency

Ch3