Annals of Corporate Governance > Vol 5 > Issue 3

The Relationship Between Corporate Governance and Tax Havens: A Critical Review and Future Research Directions

Yama Temouri, Khalifa University, Abu Dhabi, UAE, y.temouri1@aston.ac.uk Ali Ahmed, Aston University, Birmingham, UK, ahmeda31@aston.ac.uk Vijay Pereira, Khalifa University, Abu Dhabi, UAE, vijay.pereira@port.ac.uk Chris Jones, Aston University, Birmingham, UK, c.jones2@aston.ac.uk
 
Suggested Citation
Yama Temouri, Ali Ahmed, Vijay Pereira and Chris Jones (2020), "The Relationship Between Corporate Governance and Tax Havens: A Critical Review and Future Research Directions", Annals of Corporate Governance: Vol. 5: No. 3, pp 148-207. http://dx.doi.org/10.1561/109.00000022

Publication Date: 18 Aug 2020
© 2020 Yama Temouri, Ali Ahmed, Vijay Pereira and Chris Jones
 
Subjects
Auditing,  Corporate governance,  Taxation,  Corporate finance: Corporate governance,  International business: International financial reporting and transfer pricing,  International business: Comparative corporate governance,  Strategic Management: Corporate governance
 
Keywords
tax havenscorporate governancemultinational enterprisescorporate taxationtax avoidance
 

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In this article:
1. Introduction
2. Corporate Taxation Issues
3. Classifying Tax Havens
4. Determinants and Impact of Tax Havens
5. Corporate Governance and Tax Havens
6. Agency Theory and Tax Havens
7. Stakeholder Theory and Tax Havens
8. Conclusion and Future Research Avenues
References

Abstract

This review investigates the important linkages of the role and extent of corporate governance in explaining tax haven activity by multinational enterprises (MNEs). We contribute to the literature by identifying and mapping how the extant academic and policy literature has hitherto investigated: (1) the magnitude of tax haven activity over time; (2) the channels and mechanisms via which individual MNEs are able to use tax havens; and (3) the determinants that may drive MNEs to invest in tax havens. We further contribute by identifying the linkages through more recent and exciting research that investigates the relationship between corporate governance factors and tax haven activity. In an attempt to critically review and synthesize this important research, we argue that corporate governance factors may have significant potential for uncovering further insights into the complex nature of tax haven activity. We outline how corporate governance concepts can help in quantitative-, qualitative-, as well as theoretical contexts to deepen our understanding of this phenomenon around the world.

DOI:10.1561/109.00000022