Rida Belahouaoui

This study examines how internal governance mechanisms influence tax aggressiveness among listed companies in Morocco. Using a quantitative approach, the study applies linear regression analysis to panel data from 2018 to 2022. The analysis assesses the impact of key governance factors, such as ownership concentration, board size, board independence, CEO duality, firm performance, and firm age, on tax aggressiveness.
The findings indicate significant relationships between governance mechanisms and tax behavior. Ownership concentration is negatively associated with the effective tax rate, implying that firms with a dominant shareholder are less likely to engage in aggressive tax planning. Conversely, financial performance is positively linked to effective tax rate, suggesting that more profitable firms tend to comply with tax obligations. In the current effective tax rate model, board size, board independence, CEO duality, and financial performance are positively related to tax aggressiveness, while firm age has a negative effect. The book-tax difference model reveals that board independence and CEO duality reduce tax aggressiveness, whereas ownership concentration and financial performance increase it.
These results highlight the significant role of corporate governance in shaping tax strategies. Strengthening governance structures – especially by reinforcing board independence and limiting CEO duality – could help curb aggressive tax practices and promote greater fiscal transparency in Morocco’s financial market.