Government ownership , corporate governance and tax aggressiveness : evidence from China

K. Hung CHAN, Phyllis L. L. MO, Amy Y. ZHOU

Research output: Journal PublicationsJournal Article (refereed)peer-review

75 Citations (Scopus)


This study investigates how government ownership and corporate governance influence a firm's tax aggressiveness. Using Chinese listed companies during 2003–2009, we find that compared with government-controlled firms, non-government-controlled firms pursue a more aggressive tax strategy. In particular, non-government-controlled firms with a higher percentage of the board shareholdings and with a CEO who also serves as the board chairman are more aggressive. For government-controlled firms, we find that board shareholding has an impact on tax aggressiveness and it does not differ between local and central government-controlled firms. However, local government-controlled firms in less developed regions where the implementation of corporate governance measures is generally less effective are more tax aggressive than those in other regions.
Original languageEnglish
Pages (from-to)1029-1051
Number of pages23
JournalAccounting and Finance
Issue number4
Early online date5 Sept 2013
Publication statusPublished - Dec 2013

Bibliographical note

Phyllis Mo acknowledges financial support from City University of Hong Kong (Project no. 7200272) and He Miao's research assistance.


  • Corporate governance
  • Government ownership
  • Tax aggressiveness

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