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Corporate Decision Structure and Tax Efficiency: Evidence From Tax Adjustment Speed

Liangliang Wang et al.

Journal of Business Finance & Accounting2026https://doi.org/10.1111/jbfa.70049article
AJG 3ABDC A*
Weight
0.50

Abstract

This paper examines the impact of allocation of decision rights (i.e., decision structure) on tax efficiency, reflected by the speed at which firms adjust toward their target levels of tax avoidance. Relying on a Chinese setting, we find that listed business groups with a centralized decision structure exhibit faster tax adjustment speed, relative to those with a decentralized structure. This baseline finding is robust to a series of sensitivity checks. Cross‐sectional analyses indicate that our main findings are conditional on external environment uncertainty, internal information quality, demand for coordination, tax enforcement, managers’ tax expertise, and board busyness. We also show that centralization is associated with higher tax efficiency scores. Overall, our research highlights the importance of decision structure for achieving tax efficiency and thus provides value‐relevant implications for stakeholders.

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https://doi.org/https://doi.org/10.1111/jbfa.70049

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@article{liangliang2026,
  title        = {{Corporate Decision Structure and Tax Efficiency: Evidence From Tax Adjustment Speed}},
  author       = {Liangliang Wang et al.},
  journal      = {Journal of Business Finance & Accounting},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1111/jbfa.70049},
}

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Corporate Decision Structure and Tax Efficiency: Evidence From Tax Adjustment Speed

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.