Are Female CFOs Less Tax Aggressive? Evidence from Tax Aggressiveness

52 Pages Posted: 1 Aug 2014

See all articles by Bill Francis

Bill Francis

Rensselaer Polytechnic Institute (RPI) - Lally School of Management & Technology

Iftekhar Hasan

Fordham University - Gabelli School of Business; Bank of Finland

Qiang Wu

Rensselaer Polytechnic Institute (RPI) - Lally School of Management

Meng Yan

Fordham University - Gabelli School of Business

Multiple version iconThere are 2 versions of this paper

Date Written: July 9, 2014

Abstract

​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 discretionary 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

Francis, Bill and Hasan, Iftekhar and Wu, Qiang and Yan, Meng, Are Female CFOs Less Tax Aggressive? Evidence from Tax Aggressiveness (July 9, 2014). Journal of American Taxation Association, Forthcoming; Bank of Finland Research Discussion Paper No. 16/2014; Fordham University Schools of Business Research Paper No. 2474543. Available at SSRN: https://ssrn.com/abstract=2474543 or http://dx.doi.org/10.2139/ssrn.2474543

Bill Francis

Rensselaer Polytechnic Institute (RPI) - Lally School of Management & Technology ( email )

110 8th St
Troy, NY 12180
United States

Iftekhar Hasan

Fordham University - Gabelli School of Business ( email )

Rose Hill Campus Bronx
New York, NY 10458
United States

Bank of Finland ( email )

P.O. Box 160
Helsinki 00101
Finland

Qiang Wu (Contact Author)

Rensselaer Polytechnic Institute (RPI) - Lally School of Management ( email )

110 8th St
Troy, NY 12180
United States
518-276-3338 (Phone)
518-276-8661 (Fax)

Meng Yan

Fordham University - Gabelli School of Business ( email )

113 West 60th Street
Bronx, NY 10458
United States

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