Examining Tax Aggressiveness in Politically Connected Firms: A Case of an Emerging Market

Abstract

The purpose of this study is to examine the impact of firm’s political connection on tax aggressiveness. The sample of this study includes 62 non-financial firms listed in EGX100 for years 2018-2019 with 123 firm-years observation. To test the research hypothesis, descriptive analysis and Mann-Whitney U test are used. Results show that firms with politically connected members on board of directors have lower tax aggressiveness than firms without political connections. This indicates that Egyptian firms with political connections are less likely to be engaged in tax aggressiveness practices.