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CEO duality and tax avoidance: Empirical evidence from Greece

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  • Kolias, Georgios
  • Koumanakos, Evangelos

Abstract

Using a unique dataset, with matched tax returns and corporate governance features at the firm level, we estimate the impact of consolidating or splitting the chief executive officer (CEO) and chairman of the board (COB) positions on corporate tax avoidance. Contrary to the empirical findings provided by concurrent finance research, policy-makers’ beliefs, and anecdotal evidence from around the world, we argue that CEO duality has a negative effect on corporate tax avoidance, at least as far as the Greek business environment is concerned. Our findings are consistent with what mainstream agency theory and psychology suggest about the role and impact of groups in risk-taking activities and decision-making processes in general.

Suggested Citation

  • Kolias, Georgios & Koumanakos, Evangelos, 2022. "CEO duality and tax avoidance: Empirical evidence from Greece," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 47(C).
    • Handle: RePEc:eee:jiaata:v:47:y:2022:i:c:s1061951822000209
    DOI: 10.1016/j.intaccaudtax.2022.100465
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    More about this item

    Keywords

    CEO Duality; Book-Tax Differences; Average Treatment Effects;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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