This study is aimed at investigating the effects of corporate governance and tax avoidance on firm value. The motivation behind conducting this study lies in analyzing, understanding, and proving the extent of the impact of governance practices and the level of tax avoidance on firm value in Jordan. Multiple regression was used to analyze panel cross-sectional data for 38 industrial companies and 41 service companies listed on the Amman Stock Exchange (ASE) that make up the sample from 2010 to 2021. The study finds that the board size increases the firm value for the sample of service companies. However, we find an insignificant effect of the presence of women on boards of directors, audit committee size, and tax avoidance on firm value. As for the control variables included in the study, the results show that return on assets, leverage, and firm size have a significant effect on firm value. The results indicate that the role of corporate governance is unclear in enhancing the value of companies in Jordan, which raises doubt about the true application of corporate governance rules by Jordanian companies. Based on the findings, there is a need for increased government interest in encouraging companies to implement corporate governance.

错误:搜索内容不能为空,请输入英文关键词
错误:关键词超出字数限制,请精简
高级检索

The Effect of Corporate Governance and Tax Avoidance on Firm Value of Industrial and Service Companies

  • Mohammad H. Abu-Nassar,
  • Waed Mansour Qoqazeh

摘要

This study is aimed at investigating the effects of corporate governance and tax avoidance on firm value. The motivation behind conducting this study lies in analyzing, understanding, and proving the extent of the impact of governance practices and the level of tax avoidance on firm value in Jordan. Multiple regression was used to analyze panel cross-sectional data for 38 industrial companies and 41 service companies listed on the Amman Stock Exchange (ASE) that make up the sample from 2010 to 2021. The study finds that the board size increases the firm value for the sample of service companies. However, we find an insignificant effect of the presence of women on boards of directors, audit committee size, and tax avoidance on firm value. As for the control variables included in the study, the results show that return on assets, leverage, and firm size have a significant effect on firm value. The results indicate that the role of corporate governance is unclear in enhancing the value of companies in Jordan, which raises doubt about the true application of corporate governance rules by Jordanian companies. Based on the findings, there is a need for increased government interest in encouraging companies to implement corporate governance.