Are Female CFOs Less Tax Aggressive? Evidence from Tax Aggressiveness
47 Pages Posted: 25 Apr 2014 Last revised: 5 Jun 2014
Date Written: April 23, 2014
This paper investigates the effect of CFO gender on corporate tax aggressiveness. Focusing on firms that experience a male-to-female CFO transition, the paper compares those firms’ degree of tax aggressiveness during the pre- and post-transition periods. Using the probability of tax sheltering, the predicted unrecognized tax benefits, and the permanent book-tax differences to measure tax aggressiveness, we find that female CFOs are associated with less tax aggressiveness as compared to their male counterparts. The main findings are supported by additional tests based on propensity score matching, difference-in-difference tests, and tests with a female-to-male CFO transition sample. Overall, our study establishes CFO gender as an important determinant of tax aggressiveness.
Keywords: Tax aggressiveness, Tax avoidance, Gender, CFO, Risk-aversion
JEL Classification: H26, M41, J16
Suggested Citation: Suggested Citation