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CEO Marital Status and Corporate Tax Planning Behavior
Liu, M-H.1; Tian, S.2; Zhang, Y.1,3
2023-07-05
Source PublicationReview of Quantitative Finance and Accounting
ABS Journal Level3
ISSN0924-865X
Volume61Issue:4Pages:1207 - 1242
Abstract

 This paper investigates the effect of the marital status of chief executive officers (CEOs) on their firms’ aggressive tax planning practices. Using a sample of S&P 1500 companies from 1996 to 2018, we find that firms led by unmarried CEOs exhibit a higher level of aggressive tax planning behavior than firms led by married CEOs after controlling for firm characteristics and CEO traits. This result is robust to alternative identification strategies including propensity-score-matching design, difference-in-difference approach, and instrumental variable technique. Moreover, the attenuating impact of CEO marriage on tax planning behavior is more pronounced among firms in non-consumer-oriented industries and when CEOs have a low pay-performance sensitivity. Further analysis of with-in CEO marital status variation shows that CEOs tend to be more tax aggressive after divorce. This study enhances our understanding of the corporate finance repercussion of CEOs’ personal traits and in particular of the wide variation of firms’ aggressive tax planning.

KeywordAggressive Tax Planning Ceo Marital Status
DOI10.1007/s11156-023-01178-9
URLView the original
Indexed ByESCI
Language英語English
WOS Research AreaBusiness & Economics
WOS SubjectBusiness, Finance
WOS IDWOS:001022537000001
PublisherSPRINGER, ONE NEW YORK PLAZA, SUITE 4600 , NEW YORK, NY 10004, UNITED STATES
Scopus ID2-s2.0-85163955077
Fulltext Access
Citation statistics
Document TypeJournal article
CollectionFaculty of Business Administration
DEPARTMENT OF FINANCE AND BUSINESS ECONOMICS
ASIA-PACIFIC ACADEMY OF ECONOMICS AND MANAGEMENT
Corresponding AuthorTian, S.
Affiliation1.Faculty of Business Administration, University of Macau, Macao
2.School of Business, Macau University of Science and Technology, Macao
3.Asia-Pacific Academy of Economics and Management, University of Macau, Macao
First Author AffilicationFaculty of Business Administration
Corresponding Author AffilicationUniversity of Macau
Recommended Citation
GB/T 7714
Liu, M-H.,Tian, S.,Zhang, Y.. CEO Marital Status and Corporate Tax Planning Behavior[J]. Review of Quantitative Finance and Accounting, 2023, 61(4), 1207 - 1242.
APA Liu, M-H.., Tian, S.., & Zhang, Y. (2023). CEO Marital Status and Corporate Tax Planning Behavior. Review of Quantitative Finance and Accounting, 61(4), 1207 - 1242.
MLA Liu, M-H.,et al."CEO Marital Status and Corporate Tax Planning Behavior".Review of Quantitative Finance and Accounting 61.4(2023):1207 - 1242.
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