Relationship between managerial skill and tax aggressiveness of Brazilian companies
DOI:
https://doi.org/10.5007/2175-8069.2024.e94792Keywords:
Managerial Skill, Tax aggressiveness, Brazilian companiesAbstract
This study investigates the relationship between managerial skill and tax aggressiveness of Brazilian companies. Using data from Refinitiv Eikon® and the B3 website (2017-2021), 455 observations from 91 companies were examined. The analysis employed robust multiple linear regression, considering BTD (Book-Tax Difference) and TRAV (Tax Rate on Added Value) as metrics for tax aggressiveness. The results suggest that managerial skill is associated with tax aggressiveness, especially when measured by BTD. These findings contribute to the national literature on the role of managerial skills in tax decisions, highlighting that in environments with high tax burdens, skilled managers tend to adopt tax avoidance strategies. Such results may contribute to the development of policies aimed at promoting tax compliance and equity, fostering a fairer and more transparent business environment.
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