Founder or descendant CEOs, tax avoidance and firms' future risks: the Indonesian evidence

Abstract

PurposeThis study aims to examine the impact of founder or descendant chief executive officers (CEOs) on the relationship between tax avoidance and firms' future risk. This issue is important because of an ongoing debate about founder and descendant CEOs' impacts, contributions and implications for firms.Design/methodology/approachThis study uses a sample of publicly listed nonfinancial Indonesian firms in 2012–2019, most of which are family firms and adhere to a two-tier governance system that was understudied in previous studies. The authors use panel-random effect data regression for the statistical analysis.FindingsThe results demonstrate that founder or descendant CEOs do not affect the positive relationship between tax avoidance and firms' future risks.Research limitations/implicationsThis research supports the upper-echelon theory, arguing that top management teams affect firms' strategic policies and outcomes.Practical implicationsCEOs play weaker roles in countries with a two-tier governance system than in a one-tier one. Additionally, in relation to Hofstede's cultural dimensions, Indonesia has collective and feminist characteristics that emphasize elements of togetherness and group so that firms reflect the firms' top management teams and not only CEOs.Originality/valueThis research fills a research gap on the role of founder and descendant CEOs in the relationship between tax avoidance and firms' future risks by analyzing firms in Indonesia, a country with a two-tier governance system and collective and feminine cultural characteristics.

Who is next? Consumer reaction to CEO succession in family firms

“…The impact of CEOs, if any, on firm performance, has been a topic of interest for the scholarly community and practitioners for many years (Azila-Gbettor et al, 2018;Carpenter et al, 2004;Sutrisno et al, 2023;Yukl, 2002). However, the mechanisms that underline the relationship between CEOs and firm performance are still poorly understood (Mackey, 2008;Shao et al, 2020).…”

Penggunaan ChatGPT dalam Pengulasan Artikel Bertopik “Tax Avoidance”

“…Dalam artikel-artikel tersebut membahas beberapa hal yang menyangkut penghindaran pajak yang dilakukan oleh perusahaan, (Saragih & Ali, 2023) seperti misalnya siapa oknum yang dapat melakukan penghindaran pajak, faktor internal atau eksternal apa saja yang mendorong dan mempengaruhi terjadinya penghindaran pajak, hal apa saja yang berhubungan dengan penghindaran pajak, (Sutrisno et al, 2023) dan dampak negative atau positif yang harus siap untuk ditanggung oleh perusahaan di masa yang akan datang termasuk jatuhnya harga saham perusahaan. (Thai et al, 2023) Namun meskipun ketiga artikel terkait yang memiliki kata kunci yang sama yaitu terkait penghindaran pajak, fokus pembahasan masing-masing artikel berbeda, ada yang diarahakan terkait harga saham perusahaan, ada yang diarahkan lebih kepada oknum yang melakukan penghindaran pajak dengan tujuan tertentu yang biasanya cenderung dilkukan oleh manajer tingkat atas, ada juga yang menuliskan hubungan antara tindakan penghindaran pajak dengan resiko nama baik perusahaan dan CEO serta penerusnya.…”

The Influence of Female Board Member, Political Connections, and Independent Commissioners on Tax Avoidance of Property and Real Estate Companies

“…The utilization of measurement will be conducted through the computation of a ratio obtained by dividing the total debt by the total assets (Sutrisno et. al., 2023).…”