DefinePK

Abstract

The study was focused towards investigation of corporate mechanisms on tax avoidance behavior of corporations. The study objective was to measure the effects of corporate governance mechanism on tax avoidance behavior of rims. Sector wise, the study focused on transportation and logistic sector in Brazil. The methodology was quantitative and data was from 2012 to 2017 from 18 selected firms listed in the stock exchange. Regression analysis is used for testing the hypothesis. The indicator of corporate governance included independent commissioner, managerial ownership, institutional ownership, size of directors, audit committee, liquidity, and company size. Findings shows that there is significant negative effects of institutional ownership and audit committee on firm tax avoidance behavior. These findings imply that there must be a strong audit committee and institutional ownership in order to avoid negative financial behavior by corporates in this particular sector.