Assessing tax avoidance behavior in firms within Brazil's transportation and logistics sector

Abstract

The study aimed to explore the influence of corporate mechanisms on the tax avoidance practices of corporations. The primary goal was to assess how corporate governance mechanisms affect tax avoidance behavior among firms. The research specifically targeted the transportation and logistics sector in Brazil. Using a quantitative approach, the study analyzed data from 18 publicly listed companies, covering the years 2012 to 2017. Regression analysis was employed to test the hypotheses. Key corporate governance indicators included independent commissioners, managerial ownership, institutional ownership, board size, audit committee, liquidity, and company size. The results revealed a significant negative relationship between institutional ownership and the audit committee with tax avoidance behavior. These findings suggest the importance of a robust audit committee and institutional ownership to mitigate undesirable financial practices in this sector.

Keywords: Tax Avoidance, Corporate Governance, Audit, Transportation, Logistics, Brazil.