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This paper examines whether financial distress is associated with tax avoidance and whether the COVID-19 pandemic moderates such association.

The sample covers 38,958 firm-year observations from 32 countries during the period 2015–2020. Financial distress is measured using the ZSCORE by Altman (1968), while tax avoidance is based on the book-tax difference.

Financially distressed firms exhibit low tax avoidance pre- and during the pandemic periods. The authors find higher tax avoidance during the pandemic compared to the pre-pandemic period, but the pandemic enhances the negative relationship between financial distress and tax avoidance.

The study offers evidence on how financial distress drives firms to engage in more tax avoidance when firms globally encountered various levels of financial difficulty sparked by the economic challenges of the COVID-19 pandemic.

The findings provide insights to policymakers on the need to monitor and incentivise financially distressed firms, especially during economic challenges due to pandemic.

This study adds to the limited, albeit important, evidence on the joint effect of the COVID-19 pandemic and financial distress on tax avoidance.

This study aims to examine the nonlinear effects of board size and board independence on the corporate sustainability performance of listed firms worldwide.

This study uses the global environmental, social and governance (ESG) dataset from the Thomson Reuters database, which includes a sample of 23,766 firm-year observations from 33 countries from 2011 to 2022.

The results indicate that board size and independence have positive impacts on corporate sustainability performance; however, these relationships are nonlinear. The authors find an inverted U-shaped relationship for board size. After the optimal point, the positive relationship between board size and corporate sustainability performance becomes negative. Board independence, however, has a positive exponential relationship in which the positive effect increases exponentially after the optimal point. The results are robust to a battery of tests, including alternative measures for corporate sustainability performance, board independence and different estimation procedures.

This study illustrates empirical evidence on the nonlinear effect of board size and board independence on corporate sustainability performance, which explains the mixed evidence involving board size and independence in corporate sustainability literature and offers a complementary research approach in the literature on board dynamics.

This study has practical implications for investors aiming for sustainable and ethical investment choices, as they should be mindful of matters relating to board composition, particularly the appointment of independent directors and ideal board size.

Extensive empirical evidence has examined the relationship between corporate governance variables and corporate sustainability performance. This study introduces the effect of the nonlinear relationship between board size and board independence on corporate sustainability performance using international evidence.