A new academic study conducted by researchers at NC State and Northern Arizona University reviews the earnings and proxy statements of 665 U.S. companies where the boards actively oversee tax strategy. On average, the study found that tax bills were 13.2% lower when corporate boards took an interest in tax risks and strategies.
“Ultimately, our study suggests that companies are more likely to make high-risk decisions when the board is not involved and more likely to make decisions that balance risk and reward when the board is involved,” said Nathan Goldman, assistant professor of accounting.
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