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An Exploratory Study on the Influence of Family CEOs on Tax Aggressiveness in Private Family Firms: The Moderating Role of CEO Gender and Survival Risk

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  • Jonathan Bauweraerts

    (University of Mons)

  • Julien Vandernoot

    (University of Mons)

Abstract

The main purpose of this study is to investigate tax aggressiveness within private family firms. Drawing on the socioemotional wealth perspective, we hypothesize that the presence of a family CEO is negatively related to tax aggressiveness. Furthermore, we argue that the family CEO–tax aggressiveness relationship is moderated by individual- and firm-level factors. Specifically, we argue that the female gender of the CEO reinforces the negative impact of family CEOs on tax aggressiveness, whereas survival risk weakens the negative influence of having a family member at the helm of the company on tax aggressive strategies. Based on a balanced panel dataset of 1,953 observations, the results confirm our predictions and the validity of the socioemotional wealth model as an appropriate theoretical lens to explain tax aggressiveness across private family firms.

Suggested Citation

  • Jonathan Bauweraerts & Julien Vandernoot, 2019. "An Exploratory Study on the Influence of Family CEOs on Tax Aggressiveness in Private Family Firms: The Moderating Role of CEO Gender and Survival Risk," Economics Bulletin, AccessEcon, vol. 39(1), pages 636-648.
    • Handle: RePEc:ebl:ecbull:eb-18-00947
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    1. Jean-Luc Arregle & Francesco Chirico & Liena Kano & Sumit K. Kundu & Antonio Majocchi & William S. Schulze, 2021. "Family firm internationalization: Past research and an agenda for the future," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(6), pages 1159-1198, August.

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    More about this item

    Keywords

    Family firms; Tax aggressiveness; Survival Risk; CEO; Gender;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D2 - Microeconomics - - Production and Organizations

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