THE EFFECT OF CORPORATE GOVERNANCE MECHANISM ON TAX AGGRESSIVENESS: EVIDENCE FROM PHARMACEUTICAL COMPANIES IN PAKISTAN

Abstract

Corporate governance is considering the major issue now days. So, this research is conducted to examine the impact of corporate governance mechanism on tax aggressiveness. As it has been observed that for various reasons companies are trying to avoid paying taxes, which is the income for the government. Previous studies show that board diversity has no significant impact on tax aggressiveness. One independent variable (Board Diversity) along with controlling variables (ROA) have been taken to examine the impact on tax aggressiveness. The data for this research has been collected from the pharmaceutical sector from 2015 to 2024 listed in Pakistan Stock Exchange. Multiple regression models have been used to run the test and found out the impact and after running the data we have concluded that diversity both have significant impact on tax aggressiveness on industry of Pakistan.