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Investigating the Moderating Role of Board Gender Diversity in the Relationship Between Business Strategy and Tax Avoidance
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Mahdi Filsaraei *    , Davood Razzaziani |
| Hakim Toos Higher Education institute |
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Abstract: (17 Views) |
| It is argued that the presence of women on corporate boards may influence both the type of business strategy pursued and the company’s tax avoidance practices. Women are generally characterized by a more conservative approach, a higher degree of scrutiny regarding internal controls, and a preference for defensive strategies—all of which may significantly impact tax avoidance behaviors. Accordingly, this study investigates the relationship between corporate business strategy and tax avoidance, with a particular focus on the moderating role of board gender diversity. This research is quasi-experimental in nature, Also, using a regression-based approach in terms of purpose and method. Given that the study relies on historical data to test hypotheses, it is categorized as a post-event (ex post facto) study. A sample of 140 listed firms on the Tehran Stock Exchange (TSE) during the period from 2016 to 2022 (1395–1401 in the Iranian calendar), totaling 980 firm-year observations, was analyzed using multivariate regression models. The findings indicate a significant positive relationship between a prospector (aggressive) business strategy and tax avoidance. Moreover, board gender diversity strengthens this relationship. Conversely, a defender (conservative) business strategy is significantly negatively associated with tax avoidance, and board gender diversity weakens this relationship. These results highlight the critical role of gender-diverse boards in shaping the impact of strategic orientation on corporate tax behavior. |
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| Keywords: Tax Avoidance, Prospector Business Strategy, Defender Business Strategy, Board Gender Diversity |
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Full-Text [PDF 1061 kb]
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Type of Study: Research |
Subject:
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