No woman, no aggressive tax planning? A study on CEO gender and effective tax rates in the Lithuanian retail sector

Abstract

PurposeThe purpose of this paper is to investigate whether switching to a CEO of the opposite sex affects the tax aggressiveness of firms.Design/methodology/approachRegression analysis using a difference in difference approach and propensity score matching on a dataset of 8,798 firms from 2007 to 2017.FindingsThe authors find evidence that switching to a female CEO reduces the effective tax rate paid, implying a higher level of tax aggressiveness.Social implicationsThe findings contradict the narrative that female CEOs are less tax aggressive.Originality/valueThe authors are the first (to the best of the authors' knowledge) to specifically investigate if changing the CEO gender has an impact on the effective tax rate paid by the firm.

Board gender quotas, female directors and corporate tax aggressiveness: A causal approach

“…Outside the North American region, Richardson et al (2016) find a negative relationship between the number of female directors and tax aggressiveness in Australia over the 2006-2010 period. Finally, although neither Francis et al (2014) nor Zirgulis et al (2021) focus on the gender composition of the BoD, they find that female CEOs (Zirgulis et al, 2021) and female CFOs (Francis et al, 2014) are associated with less corporate tax aggressiveness.…”

CEO characteristics and Tax Aggressiveness in Indonesian Family Firms: The Upper Echelons Theory Perspective

“…Moreover, these two fundamental traits make a difference in the leadership style of management and risk-taking [30][31][32]. The difference between the two fundamental human qualities makes the third hypothesis that CEO gender influences tax aggressiveness.…”

Female in The Boardroom and Firm Performance: An Insight of Indonesia’s Firms

“…In terms of financial decisions, Gordini and Rancati (2017) and Xie et al (2020) stated that gender diversity influences the various roles and functions of gender, namely female CEOs have characteristics that male CEOs do not hold, such as matronal and protective behavior, caution, and good business intuition. Doan and Iskandar-Datta (2020), Sapienza et al (2009) and Zirgulis et al (2021) discovered that women who enter the banking industry are less risk-averse than women who enter other businesses. This finding means that the banking sector's findings on the gender-risk link may not be applicable to other sectors, necessitating a more widespread investigation into the risk implications of more gender diversity on non-banking firm boards (Love at al., 2023; Kauff et al, 2020;Teodosio et al, 2021).…”

“…16, N.° 1, enero-junio, 2024, pp [47][49][50][51][52][53][54][55][56][57][58][59][60][61][62][63] Gatot Nazir Ahmad • Dicky Iranto • M. Edo Siregar • K. Dianta A. Sebayang…”