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The burden of attention: CEO publicity and tax avoidance

Author

Listed:
  • Tinghua Duan

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - ULCO - Université du Littoral Côte d'Opale - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

  • Rong Ding
  • Wenxuan Hou
  • John Ziyang Zhang

Abstract

We use search volume index (SVI) for a CEO's name and stock ticker from Google Trends to measure CEO publicity, and examine the competing hypotheses on its relation to tax avoidance. On the one hand, CEOs who receive more attention from retail investors may engage in tax evasion activities to meet investors' performance expectations; on the other hand, they are more concerned with public image and avoiding being labeled as tax avoiders. Based on the CEOs of S&P 500 firms between 2004 and 2011, our finding supports the former and shows that CEOs with higher publicity manage to have a lower effective tax rate and cash effective tax rate. Such effect is moderated by board independence. Finally, firms with higher CEO publicity pay auditors higher tax fees, suggesting that these CEOs tend to use more tax planning services from auditors.

Suggested Citation

  • Tinghua Duan & Rong Ding & Wenxuan Hou & John Ziyang Zhang, 2018. "The burden of attention: CEO publicity and tax avoidance," Post-Print hal-02993036, HAL.
    • Handle: RePEc:hal:journl:hal-02993036
    DOI: 10.1016/j.jbusres.2018.02.010
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    Cited by:

    1. Lu, Yun & Ntim, Collins G. & Zhang, Qingjing & Li, Pingli, 2022. "Board of directors’ attributes and corporate outcomes: A systematic literature review and future research agenda," International Review of Financial Analysis, Elsevier, vol. 84(C).
    2. Xiaofeng Quan & Cheng Xiang & Ru (Tina) Gao, 2024. "Reputation is golden: Superstar CEOs and trade credit," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 51(1-2), pages 631-656, January.
    3. Wenqin Li & John Ziyang Zhang & Rong Ding, 2023. "Impact of Directors’ Network on Corporate Social Responsibility Disclosure: Evidence from China," Journal of Business Ethics, Springer, vol. 183(2), pages 551-583, March.
    4. Zhang, Yameng & Zhan, Wu & Xu, Yekun & Kumar, Vikas, 2020. "International friendship cities, regional government leaders, and outward foreign direct investment from China," Journal of Business Research, Elsevier, vol. 108(C), pages 105-118.
    5. Weiping Liu & Yanling Lian & Cuili Qian, 2022. "Buffering and bridging: How firms manage the burden of celebrity," Asia Pacific Journal of Management, Springer, vol. 39(2), pages 483-513, June.
    6. Alessandro Cirillo & Maria Angela Manzi & Jonathan Bauweraerts & Salvatore Sciascia, 2025. "Tax Avoidance in Family Business: The Ethical Perspective of CEO Transgenerational Responsibility," Journal of Business Ethics, Springer, vol. 198(4), pages 841-864, May.
    7. Xi Zhong & Liuyang Ren & Ge Ren, 2023. "Performance shortfall, institutional logic and firms’ tax avoidance," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(4), pages 855-886, December.
    8. Chih-Liang Liu & Junmao Chiu, 2024. "External social networks and tax avoidance," Review of Quantitative Finance and Accounting, Springer, vol. 62(4), pages 1459-1504, May.
    9. Anissa Dakhli & Zouhaira Khelil, 2025. "Impact Of CEO Characteristics On Corporate Tax Avoidance: GMM Approach In French Listed Firms," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 24(3), pages 391-416, September.
    10. Ofuan James Ilaboya & Edosa Joshua Aronmwan, 2023. "Chief Executive Officer’s attributes and tax avoidance: evidence from Nigeria," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 20(1), pages 99-108, March.
    11. Zhang, Lida & Cai, Wenwu, 2023. "Star CEOs and investment efficiency: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 82(C).
    12. Huixiang Zeng & Xuemei Li & Zhifang Zhou & Yishuang Ma & Fangting Lv, 2023. "Local gambling culture and corporate tax aggressiveness: A trait activation perspective on informal institutions," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(6), pages 3166-3184, September.
    13. Yaohua Qin & He Xiao, 2025. "Air pollution and corporate tax avoidance," Review of Quantitative Finance and Accounting, Springer, vol. 64(1), pages 475-503, January.
    14. Ming-Hua Liu & Shaohua Tian & Yang Zhang, 2023. "CEO marital status and corporate tax planning behavior," Review of Quantitative Finance and Accounting, Springer, vol. 61(4), pages 1207-1242, November.
    15. Alnori, Faisal & Alqahtani, Faisal, 2019. "Capital structure and speed of adjustment in non-financial firms: Does sharia compliance matter? Evidence from Saudi Arabia," Emerging Markets Review, Elsevier, vol. 39(C), pages 50-67.
    16. Cumming, Douglas & Nguyen, My, 2025. "The impact of asset specificity on corporate tax avoidance: Do financial constraints and product market power matter?," The British Accounting Review, Elsevier, vol. 57(3).
    17. Wang, Qiping & Lau, Raymond Yiu Keung & Xie, Haoran, 2021. "The impact of social executives on firms’ mergers and acquisitions strategies: A difference-in-differences analysis," Journal of Business Research, Elsevier, vol. 123(C), pages 343-354.
    18. Yihao Guo & Yanwen Song & Yimin Wang, 2024. "Happy troubles? CSR awards and CSR report quality," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 2989-3005, July.
    19. Jiaojiao Qin & Jun Lin & Yan Xin, 2024. "Corporate tax avoidance: The impact of performance above aspiration and CEO experience," Asia Pacific Journal of Management, Springer, vol. 41(4), pages 2301-2331, December.
    20. Cao, Feng & Li, Sifei & Dai, Ming & Li, Jing, 2023. "Your heart is where your treasure is: Family chairman and tax avoidance in family-controlled firms," Journal of Business Research, Elsevier, vol. 154(C).
    21. Yukun Pan & Lin Liao & Daifei Yao & Joseph H. Zhang, 2024. "Board Chairs’ Early-Life Experience and Tax Avoidance," Journal of Business Ethics, Springer, vol. 192(4), pages 897-917, July.
    22. Wang, Zhenjie & Yang, Yi & Zhang, Jiewei, 2024. "Are female directors more inclined to avoid risks?," International Review of Financial Analysis, Elsevier, vol. 92(C).
    23. Minjie Huang & Shunan Zhao & Andreas Pape, 2023. "Estimating Case‐based Individual and Social Learning in Corporate Tax Avoidance," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 85(2), pages 403-434, April.

    More about this item

    Keywords

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    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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