Boahen, Eric O., Mamatzakis, Emmanuel C., Neri, Lorenzo ORCID: https://orcid.org/0000-0001-6627-0386 and Russo, Antonella ORCID: https://orcid.org/0000-0001-9376-1383 (2026) Mitigating tax avoidance: the role of board interpersonal diversity in the United Kingdom. International Journal of Finance and Economics. ISSN 1076-9307 (Print), 1099-1158 (Online) (doi:10.1002/ijfe.70213)

PDF (Author's Accepted Manuscript) 53694 RUSSO_Mitigating_Tax_Avoidance_The_Role_Of_Board_(AAM)_2026.pdf - Accepted Version Restricted to Repository staff only until 21 April 2028. Download (738kB) | Request a copy

Abstract

This study investigates how the board’s interpersonal diversity is associated with company tax avoidance behaviour. The “out of Africa” theory of human origin, which assesses how individual attributes (including cognitive capabilities, capacities, and problem-solving style) and interpersonal trust are shaped by human evolution, forms the basis of the interpersonal diversity scale. A broad literature affirms how diversity in cognitive skills and interpersonal trust enhance board performance and monitoring mechanisms within the board members. In this study, we analyse how the interpersonal diversity of the board members for UK firms over the period 1999 to 2019 mitigates agency problems and tax avoidance. Our main finding shows interpersonal diversity is associated with lower tax avoidance. These results emphasise the importance of the composition of boards with members from diverse genetic backgrounds. This could be encouraged through disclosure requirements, guidelines, or incentives for companies to diversify their board composition.

Item Type:	Article
Uncontrolled Keywords:	agency theory, board members, interpersonal diversity, interpersonal trust, tax avoidance
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HF Commerce > HF5601 Accounting
Faculty / School / Research Centre / Research Group:	Greenwich Business School Greenwich Business School > Political Economy, Governance, Finance and Accountability (PEGFA) Journal of Economic Literature Classification > Political Economy, Governance, Finance and Accountability (PEGFA) Greenwich Business School > School of Accounting, Finance and Economics
Last Modified:	05 Jun 2026 10:42
URI:	https://gala.gre.ac.uk/id/eprint/53694

Actions (login required)

View Item

Downloads