The Unbreakable Nexus: Harnessing Governance Mechanisms to Curb Tax Evasion

Volume 8, Issue 6, December 2023     |     PP. 222-238      |     PDF (1202 K)    |     Pub. Date: December 26, 2023
DOI: 10.54647/economics790430    28 Downloads     101062 Views  


Nesrine Dardouri, University of Sousse, Faculty of economics and management of Sousse, MOfid LR21 ES28
Mounir Smida, University of Sousse, Faculty of economics and management of Sousse, MOfid LR21 ES28

This work examines the main determinants of tax evasion within publicly traded companies. The literature review indicates that there are several practices used by Tunisian companies to eliminate their tax obligations, including group size, profitability, intangible assets and debts. Thus, this study aims to obtain empirical evidence on the effect of corporate governance mechanisms on tax evasion, which becomes a proxy for the current ETR (effective tax rate). The samples for this study consisted of 20 manufacturing companies listed on the Tunisian Stock Exchange between 2012 and 2022. Hypothesis testing used multiple regression analysis. The result of this study shows that the percentage of shares held by members of the board of directors and the percentage of institutional shareholding have a positive effect on tax evasion in part, but that the number of board members administration and the percentage of independent members do not have a simultaneous effect in defining tax evasion.

Tax evasion, Corporate governace, board members administration.

Cite this paper
Nesrine Dardouri, Mounir Smida, The Unbreakable Nexus: Harnessing Governance Mechanisms to Curb Tax Evasion , SCIREA Journal of Economics. Volume 8, Issue 6, December 2023 | PP. 222-238. 10.54647/economics790430


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