JEFMS Journal

Google Scholar

Article Pdf

---

ABSTRACT:

This study aims to examine the development of chief executive officer (CEO) and tax avoidance. The researchers employed a structured literature review method, utilizing reputable electronic databases to gather data from 2018 to 2024, resulting in the selection of 16 studies based on inclusion and exclusion criteria. The findings of this study comprehensively present the developments, types of variables and measurements. There are several types of CEO variables, including CEO overconfidence, CEO narcissism, CEO power, CEO greed, contractual and behavioral CEO attributes, founder or descendant CEOs, masculine-faced CEOs, CEO publicity, CEO stock options, CEO duality, and CEO hometown ties. These variables serve as independent variables for the dependent variable of tax avoidance, measured by the Effective Tax Rate and Book-Tax Difference. This research contributes to the academic discourse and practical applications in the fields of CEO and tax avoidance, offering valuable insights for future studies in this area.

KEYWORDS:

Chief Executive Officer (CEO), Tax Avoidance

REFERENCES:

1) Araújo, V. C., Goís, A. D., De Luca, M. M. M., & De Lima, G. A. S. F. (2021). CEO narcissism and corporate tax avoidance. a. Revista Contabilidade e Financas, 32(85), 80-94. https://doi.org/10.1590/1808-057X202009800

2) Block, D., Gerstner, A., Block, D., Candidate, J. D., & Gerstner, A. (2016). One-Tier vs. Two-Tier Board Structure: A Comparison Between the United States and Germany Spring Semester 2016 Prof. Jill Fisch, University of Pennsylvania. Jill Fisch, University of Pennsylvania Law School Global Research Seminar Compar. Global Research Seminar Comparative Corporate Governance and Financial Regulation, 9(1).

3) Donaldson, L. (1997). Strategic leadership: Top executives and their effects on organizations. Australian Journal of Management, 22(2), 221-224. https://doi.org/10.1177/031289629702200205

4) Duan, T., Ding, R., Hou, W., & Zhang, J. Z. (2018). The burden of attention: CEO publicity and tax avoidance. Journal of Business Research, 87(February), 90-101. https://doi.org/10.1016/j.jbusres.2018.02.010

5) Guat-Khim, H., & Lian-Kee, P. (2024). Ceo Power and Tax Avoidance in Malaysia: the Moderating Effect of Board Gender Diversity.Asian Academy of Management Journal of Accounting and Finance, 20(1), 97-119. a. https://doi.org/10.21315/aamjaf2024.20.1.3

6) Guenther, D. A., Matsunaga, S. R., & Williams, B. M. (2017). Is tax avoidance related to firm risk? Accounting Review, 92(1), 115- 136. https://doi.org/10.2308/accr-51408

7) Hambrick, D. C. (2007). Upper echelons theory: An update. Academy of Management Review,32(2),334-343. https://doi.org/10.5465/AMR.2007.24345254

8) Hanlon, M. (2005). The Persistence and Pricing of Earnings, Accruals, and Cash Flows When Firms Have Large Book-Tax Differences.SSRN Electronic Journal. https://doi.org/10.2139/ssrn.379140

9) Hanlon, M., & Heitzman, S. (2010). A review of tax research. Journal of Accounting and Economics, 50(2-3), 127-178. https://doi.org/10.1016/j.jacceco.2010.09.002

10) Harymawan, I., Anridho, N., Minanurohman, A., Ningsih, S., Kamarudin, K. A., & Raharjo, Y. (2023). Do more masculine-faced CEOs reflect more tax avoidance? Evidence from Indonesia. Cogent Business and Management, 10(1). https://doi.org/10.1080/23311975.2023.2171644

11) Hsieh, T. S., Wang, Z., & Demirkan, S. (2018). Overconfidence and tax avoidance: The role of CEO and CFO interaction. a. Journal of Accounting and Public Policy, 37(3), 241-253. https://doi.org/10.1016/j.jaccpubpol.2018.04.004

12) Jensen, M., & Meckling, W. (2012). Theory of the firm: Managerial behavior, agency costs, and ownership structure. The Economic Nature of the Firm: A Reader, Third Edition, 283-303. https://doi.org/10.1017/CBO9780511817410.023

13) Kalbuana, N., Taqi, M., Uzliawati, L., & Ramdhani, D. (2023). CEO narcissism, corporate governance, financial distress, and company size on corporate tax avoidance. Cogent Business and Management, 10(1). a. https://doi.org/10.1080/23311975.2023.2167550

14) Kitchenham, B., Pearl Brereton, O., Budgen, D., Turner, M., Bailey, J., & Linkman, S. (2009). Systematic literature reviews in software engineering - A systematic literature review. Information and Software Technology, 51(1), 7-15. https://doi.org/10.1016/j.infsof.2008.09.009

15) Kolias, G., & Koumanakos, E. (2022). CEO duality and tax avoidance: Empirical evidence from Greece. Journal of International Accounting, Auditing and Taxation, 47, 100465. https://doi.org/10.1016/j.intaccaudtax.2022.100465

16) Lanis, R., Richardson, G., Liu, C., & McClure, R. (2022). The impact of corporate tax avoidance on board of directors and CEO reputation. In Business and the Ethical Implications of Technology (Vol. 0, Issue 0). Springer Netherlands. https://doi.org/10.1007/s10551-018-3949-4

17) Meutia, I., Kartasari, S. F., Yusrianti, H., & Yaacob, Z. (2022). Evolution of Sustainability Reporting Research: Evidence from Indonesia (A Systematic Literature Review). Indonesian Journal of Sustainability Accounting and Management, 6(1). https://doi.org/10.28992/ijsam.v6i1.501

18) Neifar, S., & Huesing, S. (2023). The effect of contractual and behavioral CEO attributes on aggressive tax avoidance: the case of German-listed firms in HDAX. Journal of Financial Reporting and Accounting. https://doi.org/10.1108/JFRA-04-2022-0158

19) Oussii, A. A., & Klibi, M. F. (2024). The impact of CEO power on corporate tax avoidance: the moderating role of institutional ownership. Corporate Governance (Bingley), 24(4), 725-742. https://doi.org/10.1108/CG-02-2023-0067

20) Ryan J. Wilson. (2009). An Examination of Corporate Tax Shelter Participants at the University of Iowa. The Accounting Review, 84(3), 969-999. http://www.mitrariset.com/2012/07/data-cgpi.html

21) Shackelford, D. A., & Shevlin, T. J. (2005). Empirical Tax Research in Accounting. SSR Electronic jo urnal, iii. a. https://doi.org/10.2139/ssrn.235796

22) Shen, Y., Gao, D., Bu, D., Yan, L., & Chen, P. (2019). CEO hometown ties and tax avoidance-evidence from China's listed firms.Accounting and Finance, 58(5), 1549-1580. https://doi.org/10.1111/acfi.12442

23) Slemrod, J., & Yitzhaki, S. (2002). Tax Avoidance, Tax Evasion and Administration. Journal of Public Economics, 3, 1425- 1442.

24) Souguir, Z., Lassoued, N., & Bouzgarrou, H. (2024). CEO overconfidence and tax avoidance: the role of institutional and family ownership. International Journal of Managerial Finance, 20(3), 768-793. https://doi.org/10.1108/IJMF-12-2022-0545

25) Sutrisno, P., Utama, S., Anitawati Hermawan, A., & Fatima, E. (2022). Founder and Descendant vs. Professional CEO: Does CEO Overconfidence Affect Tax Avoidance in the Indonesia Case? Economies, 10(12), 1-20. a. https://doi.org/10.3390/economies10120327

26) Sutrisno, P., Utama, S., Hermawan, A. A., & Fatima, E. (2023). Founder or descendant CEOs, tax avoidance and firms' future risks: the Indonesian evidence. Journal of Family Business Management, 13(4), 1190-1211. a. https://doi.org/10.1108/JFBM- 10-2022- 0122.

27) Waldkirch, M. (2020). Non-family CEOs in family firms: Spotting gaps and challenging assumptions for a future research agenda.Journal of Family Business Strategy, 11(1), 100305. https://doi.org/10.1016/j.jfbs.2019.100305

28) Xu, L. (2024). CEO greed and corporate tax avoidance. Journal of Strategy and Management, 17(1), 41-58. a. https://doi.org/10.1108/SMA-01-2023-0002

29) Zolotoy, L., O'Sullivan, D., Martin, G. P., & Wiseman, R. M. (2021). Stakeholder Agency Relationships: CEO Stock Options and Corporate Tax Avoidance. Journal of Management Studies, 58(3), 782-814 a. . https://doi.org/10.1111/joms.12623