The power of good corporate governance in activating the impact of internal information quality on tax savings
研究了良好公司治理如何增强内部信息质量对税收节约的正面影响，基于澳大利亚上市公司2017-2021年数据，发现公司治理越优，内部信息质量对税收节约的促进作用越强。
Purpose This paper examines the moderating effect of good corporate governance on the association between internal information quality and tax savings. Design/methodology/approach This study uses a quantitative approach. It employs an Australian sample of analysis composed of 1,295 firm-year observations from the period 2017 to 2021. Data relating to corporate governance are hand-collected from the annual reports. Findings Based on the result of the analysis, this study demonstrates that the interaction between corporate governance and quality of internal information is positively associated with tax savings. Superior corporate governance is critical in activating the effect of internal information quality on tax savings. This finding is robust to a battery of robustness checks and additional tests. Research limitations/implications This examination utilizes only publicly traded companies from one developed country. Practical implications For the company management, an effective governance structure must be at the top because it will determine the development of all other areas. This study emphasizes the need to continuously improve the effectiveness of corporate governance practices. For long-term investors, an important indicator that can be considered in assessing the “safety” of a company’s tax strategy is its corporate governance aspects. For regulators, this study is expected to assist regulators in creating a more adequate corporate governance implementation and disclosure package to be implemented by corporations in the future. Originality/value This study provides new evidence on a crucial construct that can strengthen the relationship between internal information quality and tax savings.