EXTERNAL GOVERNANCE AND CORPORATE TAX AVOIDANCE: INITIAL EVIDENCE FROM VIETNAM
Keywords:
Big Four, Board Independence, Corporate Governance, Major Shareholders, Tax Avoidance
Abstract
This study examines the relationship between external corporate governance mechanisms—namely, independent boards, major shareholders, and Big Four auditors—and tax avoidance by Vietnamese listed firms. This aspect has been little studied in the local context. This study employs the Generalized Least Squares (GLS) method to mitigate the heteroskedasticity issue in panel data, thereby enhancing the precision and reliability of the analytical findings. The results indicate that
firms with independent boards and a higher proportion of major shareholders are more inclined to engage in tax avoidance; meanwhile, firms audited by Big Four auditors are less likely to avoid taxes.
