The power of good corporate governance in activating the impact of internal information quality on tax savings

Research output: Contribution to journalArticlepeer-review


Purpose: This paper examines the moderating effect of good corporate governance on the association between internal information quality and tax savings. Design/methodology/approach: This study uses a quantitative approach. It employs an Australian sample of analysis composed of 1,295 firm-year observations from the period 2017 to 2021. Data relating to corporate governance are hand-collected from the annual reports. Findings: Based on the result of the analysis, this study demonstrates that the interaction between corporate governance and quality of internal information is positively associated with tax savings. Superior corporate governance is critical in activating the effect of internal information quality on tax savings. This finding is robust to a battery of robustness checks and additional tests. Research limitations/implications: This examination utilizes only publicly traded companies from one developed country. Practical implications: For the company management, an effective governance structure must be at the top because it will determine the development of all other areas. This study emphasizes the need to continuously improve the effectiveness of corporate governance practices. For long-term investors, an important indicator that can be considered in assessing the “safety” of a company’s tax strategy is its corporate governance aspects. For regulators, this study is expected to assist regulators in creating a more adequate corporate governance implementation and disclosure package to be implemented by corporations in the future. Originality/value: This study provides new evidence on a crucial construct that can strengthen the relationship between internal information quality and tax savings.

Original languageEnglish
JournalJournal of Accounting Literature
Publication statusAccepted/In press - 2024


  • Corporate governance
  • Decision theory
  • Internal information quality
  • Resource-based theory
  • Stakeholder theory
  • Tax savings


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