Are financial derivatives related to intra-entities' tax aggressiveness? UK Evidence

Ahmed Boussaidi, Imed Chkir*, Khaled Hussainey, Mounira Hamed-Sidhom

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


This study investigates the effect of hedged versus non-hedged financial derivative instruments on the intra-entities’ tax aggressiveness. Our findings provide evidence that multinational enterprises manage derivatives instruments to avoid their tax expenses aggressively. Specifically, non-hedged derivatives are an excellent determinant of the tax aggressiveness practices of corporate groups. Besides, this study speaks to the central role of governance quality in mitigating this aspect of tax aggressiveness and provides practical guidance to tax authorities and regulators for establishing new policies for governing financial derivative instruments and preventing tax aggressiveness from negatively affecting firms and society.
Original languageEnglish
JournalEuropean Financial Management
Early online date15 Sept 2022
Publication statusEarly online - 15 Sept 2022


  • financial derivative instruments
  • transfer pricing aggressiveness
  • governance


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