Panel study finds that integrated reporting reduces tax avoidance among listed firms, indicating transparency deters aggressive tax strategies even under voluntary disclosure.
Key Points
To evaluate the impact of voluntary integrated reporting on corporate tax avoidance and assess whether audit committee effectiveness moderates this relationship.
Analyzed a sample of 373 non-financial listed firms on Gulf Cooperation Council (GCC) stock exchanges from 2016 to 2023.
Conducted panel data regression alongside System Generalized Method of Moments (GMM) and alternative proxy measures for tax avoidance.
Integrated reporting disclosure demonstrated a statistically significant negative association with corporate tax avoidance across multiple econometrics specifications.
Audit committee effectiveness exhibited no statistically significant moderating effect on the relationship between integrated reporting and tax avoidance.