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The impact of managers' overconfidence and corporate tax avoidance: a full-life-cycle perspective

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  • Su, Yang
  • Liu, Anbei
  • Lei, Wenhao

Abstract

This research delves into the ways in which managers' assumptions influence organizational decisions about tax compliance by examining both internal and external environmental factors. The study's findings reveal the complex web of connections between managers' perspectives and their teams' actions, demonstrating how cognitive and emotional biases may cause risky choices like tax evasion. In order to further examine how the impact of management assumptions varies throughout different stages of a company's development—from inception and growth to maturity and decline—the research incorporates the whole firm life cycle as a moderating variable. This allows the study to provide a clear picture of how the strength and direction of this effect change with time.

Suggested Citation

  • Su, Yang & Liu, Anbei & Lei, Wenhao, 2026. "The impact of managers' overconfidence and corporate tax avoidance: a full-life-cycle perspective," Finance Research Letters, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:finlet:v:90:y:2026:i:c:s1544612325024936
    DOI: 10.1016/j.frl.2025.109244
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    References listed on IDEAS

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    1. Ofuan James Ilaboya & Edosa Joshua Aronmwan, 2021. "Overconfident CEOs and Corporate Tax Avoidance," The Journal of Accounting and Management, Danubius University of Galati, issue 2(11), pages 70-80, August.
    2. Wang, Yanan & Liang, Shangkun & Kong, Dongmin & Wang, Qin, 2019. "High-speed rail, small city, and cost of debt: Firm-level evidence," Pacific-Basin Finance Journal, Elsevier, vol. 57(C).
    3. Faten Lakhal & Sabrina Khemiri & Sami Bacha & Assil Guizani, 2023. "CEO overconfidence and tax practices: does board gender diversity matter? [Exceso de confianza de los directivos y prácticas fiscales: ¿Importa la diversidad de género en los consejos de administración?]," Post-Print hal-03583397, HAL.
    4. Chen, Shaoyang & Yang, Yang, 2024. "Impact of executive overseas backgrounds on corporate tax–avoidance behaviors," Finance Research Letters, Elsevier, vol. 67(PB).
    5. Jianqun Xi & He Xiao, 2025. "CEO Early-Life Disaster Experience and Tax Avoidance: Chinese Evidence," The International Journal of Accounting (TIJA), World Scientific Publishing Co. Pte. Ltd., vol. 60(01), pages 1-38, March.
    6. Emmanuel Kojo Oseifuah, 2025. "Application of the fraud triangle model in mitigating tax evasion in developing countries: a conceptual framework," International Journal of Business Ecosystem & Strategy (2687-2293), Bussecon International Academy, vol. 7(2), pages 297-306, April.
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