Abstract
This study investigates the relationship between tax payment and governance among firms listed on the Sao Paulo Stock Exchange (BM&FBovespa). To determine whether there is a correlation between corporate governance and payment of taxes, it is evaluated the allocation of the added value generated by the firms between 2005 and 2009, using a sample of companies ranked as among Brazil’s 500 largest public companies according to the magazine Exame Melhores e Maiores that also have Statements of Value Added (SVAs). The results indicate that firms listed for trading in special segments of the BM&FBovespa requiring higher governance levels allocate a lower percentage of their added value to pay taxes in comparison with other listed companies. This study can contribute to new research into the theme of corporate governance and taxation, such as to evaluate the relation between governance and taxation in specific economic sectors or whether or not firms with good governance are more likely to receive tax incentives. Overall, the results add insight into one way that governance can help improve firm performance and increase shareholder value.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
