IDEAS home Printed from https://ideas.repec.org/a/eee/riibaf/v66y2023ics0275531923001411.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0275531923001411
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ribaf.2023.102015?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Michael P. Donohoe & W. Robert Knechel, 2014. "Does Corporate Tax Aggressiveness Influence Audit Pricing?," Contemporary Accounting Research, John Wiley & Sons, vol. 31(1), pages 284-308, March.
    2. Mohamed A. Elbannan & Omar Farooq, 2020. "Do more financing obstacles trigger tax avoidance behavior? Evidence from Indian SMEs," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 44(1), pages 161-178, January.
    3. Hope, Ole-Kristian & Ma, Mark (Shuai) & Thomas, Wayne B., 2013. "Tax avoidance and geographic earnings disclosure," Journal of Accounting and Economics, Elsevier, vol. 56(2), pages 170-189.
    4. Farzan Yahya & Abdul Manan & Muhammad Wasim Jan Khan & Muhammad Sadiq Hashmi, 2021. "The moderating role of board gender diversity between power-based corporate governance and tax aggressiveness," Economics and Business Letters, Oviedo University Press, vol. 10(2), pages 104-147.
    5. Han, Yu & Chi, Wei & Zhou, Jinyi, 2022. "Prosocial imprint: CEO childhood famine experience and corporate philanthropic donation," Journal of Business Research, Elsevier, vol. 139(C), pages 1604-1618.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Du, Qunyang & Xue, Mengzhe & Li, Zhongyuan & Min Du, Anna & Yang, Tianle, 2024. "Economic vulnerabilities and sustainability in energy utilities: Managing climate change in the face of geopolitical turmoil," Research in International Business and Finance, Elsevier, vol. 71(C).
    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).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fangjun Wang & Shuolei Xu & Junqin Sun & Charles P. Cullinan, 2020. "Corporate Tax Avoidance: A Literature Review And Research Agenda," Journal of Economic Surveys, Wiley Blackwell, vol. 34(4), pages 793-811, September.
    2. Guanming He & Helen Mengbing Ren & Richard Taffler, 2020. "The impact of corporate tax avoidance on analyst coverage and forecasts," Review of Quantitative Finance and Accounting, Springer, vol. 54(2), pages 447-477, February.
    3. Chen, Wanyi & Jin, Rong, 2023. "Does tax uncertainty affect firm innovation speed?," Technovation, Elsevier, vol. 125(C).
    4. Chen, Jie & Mishra, Tapas & Song, Wei & Zhang, Qingjing & Zhang, Zhuang, 2024. "The impact of bank mergers on corporate tax aggressiveness," Journal of Corporate Finance, Elsevier, vol. 84(C).
    5. Junjian Gu, 2019. "A Potential Risk of Increasing Cross-National Distance: Evidence from Less Sustainable Tax Policies," Sustainability, MDPI, vol. 11(9), pages 1-22, May.
    6. García-Meca, Emma & Ramón-Llorens, Maria-Camino & Martínez-Ferrero, Jennifer, 2021. "Are narcissistic CEOs more tax aggressive? The moderating role of internal audit committees," Journal of Business Research, Elsevier, vol. 129(C), pages 223-235.
    7. Chuanlu Ge & Yuhan Bi & Jia Xu, 2024. "Local donation culture and corporate tax avoidance: Evidence from China," Economics and Politics, Wiley Blackwell, vol. 36(2), pages 734-763, July.
    8. Samuel Jebaraj Benjamin, 2019. "The Effect of Financial Constraints on Audit Fees," Capital Markets Review, Malaysian Finance Association, vol. 27(2), pages 59-87.
    9. Li, Qian & Liu, Shangqun, 2023. "Does alternative data reduce stock price crash risk? Evidence from third-party online sales disclosure in China," International Review of Financial Analysis, Elsevier, vol. 88(C).
    10. Wang, Jiaxin & Zhao, Mu & Huang, Xiang & Song, Zilong & Sun, Di, 2024. "Supply chain diffusion mechanisms for AI applications: A perspective on audit pricing," International Review of Financial Analysis, Elsevier, vol. 93(C).
    11. Nan-Ting Kuo & Cheng Few Lee, 2020. "A Potential Benefit of Increasing Book–Tax Conformity: Evidence from the Reduction in Audit Fees," World Scientific Book Chapters, in: Cheng Few Lee & John C Lee (ed.), HANDBOOK OF FINANCIAL ECONOMETRICS, MATHEMATICS, STATISTICS, AND MACHINE LEARNING, chapter 3, pages 151-197, World Scientific Publishing Co. Pte. Ltd..
    12. Jinghui Sun & Liuchuang Li & Baolei Qi, 2022. "Financial statement comparability and audit pricing," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(5), pages 4631-4661, December.
    13. Tang, Linjia & Guo, Yingying & Zha, Jianfeng & Zheng, Weiwei, 2024. "Acquiescence or Redemption: CEO’s early-life experience of environmental pollution and corporate green innovation," Journal of Business Research, Elsevier, vol. 173(C).
    14. Meiying Hua & Pervaiz Alam, 2021. "Audit Quality and Environment, Social, and Governance Risks," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 12(2), pages 50-75, April.
    15. Yewei Wu & Bofu Zhang, 2023. "Inquiry Letters and Tax Aggressiveness," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 31(4), pages 37-65, July.
    16. Jean Bédard & Suzanne M. Paquette, 2021. "Audit Committee Financial Expertise, Litigation Risk, and Auditor‐Provided Tax Services†," Accounting Perspectives, John Wiley & Sons, vol. 20(1), pages 7-48, March.
    17. M.A. Gulzar & Jacob Cherian & Muhammad Safdar Sial & Alina Badulescu & Phung Anh Thu & Daniel Badulescu & Nguyen Vinh Khuong, 2018. "Does Corporate Social Responsibility Influence Corporate Tax Avoidance of Chinese Listed Companies?," Sustainability, MDPI, vol. 10(12), pages 1-12, December.
    18. Müller, Raphael & Spengel, Christoph & Vay, Heiko, 2020. "On the determinants and effects of corporate tax transparency: Review of an emerging literature," ZEW Discussion Papers 20-063, ZEW - Leibniz Centre for European Economic Research.
    19. Jingyu Yang & Hai Wu & Yangxin Yu, 2021. "Distracted institutional investors and audit risk," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(3), pages 3855-3881, September.
    20. He, Guanming & Li, Zhichao & Yu, Ling & Zhou, Zhanqiang, 2023. "Contribution to poverty alleviation: A waste or benefit for corporate financing?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 89(C).

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:riibaf:v:66:y:2023:i:c:s0275531923001411. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ribaf .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.