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Does CEO early-life famine experience affect corporate tax avoidance? Evidence from China

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  • Tan, Qingmei
  • Ling, Yuzhu
  • Yang, Baochen
  • Geng, Peixuan

Abstract

Based on the imprinting theory, this study investigates the effect of CEO early-life famine experience on corporate tax avoidance (CTA). The empirical results show that firms led by CEOs who experienced the Great Chinese Famine (1959–1961) in early life tend to engage in CTA at a lower level. Both CEO duality and higher educational attainment weaken the negative effect of CEO early-life famine experience on CTA. Corporate social responsibility and risk-taking have partial mediating effects between CEO early-life famine experience and CTA. Moreover, heterogeneous analysis indicates that the negative relationship is more pronounced and the moderating effects are both significant in a more munificent and dynamic environment.

Suggested Citation

  • Tan, Qingmei & Ling, Yuzhu & Yang, Baochen & Geng, Peixuan, 2023. "Does CEO early-life famine experience affect corporate tax avoidance? Evidence from China," Research in International Business and Finance, Elsevier, vol. 66(C).
    • Handle: RePEc:eee:riibaf:v:66:y:2023:i:c:s0275531923001411
    DOI: 10.1016/j.ribaf.2023.102015
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    2. BENKRAIEM, Ramzi & GAAYA, Safa & LAKHAL, Faten, 2024. "Tax avoidance, investor protection, and investment inefficiency: An international evidence," Research in International Business and Finance, Elsevier, vol. 69(C).

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    More about this item

    Keywords

    Imprinting theory; CEO experience; Famine; Corporate tax avoidance; CEO duality; Educational experience;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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