The Impact of corporate tax avoidance on board of directors and CEO reputation

Roman Lanis; Grant Richardson; Chelsea Liu; Ross McClure

doi:10.1007/978-3-031-18794-0_10

The Impact of corporate tax avoidance on board of directors and CEO reputation

Roman Lanis^*, Grant Richardson, Chelsea Liu, Ross McClure

^*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceeding › Chapter › peer-review

6 Citations (Scopus)

Abstract

This study examines the impact of corporate tax avoidance on board of directors and chief executive officer (CEO) reputation. Our regression results show that when firms engage in tax avoidance, both directors and CEOs, on average, are rewarded by improvements in their reputations as proxied by an increased number of outside board seats. In particular, both independent directors and non-CEO executive directors undergo positive changes in reputation. We also find that CEOs of tax-aggressive firms experience enhanced reputations by gaining extra board seats. Our main regression results hold based on additional analyses. Overall, this study provides important empirical evidence confirming an association between tax avoidance and the individual reputations of directors and CEOs.

Original language	English
Title of host publication	Business and the ethical implications of technology
Editors	Kirsten Martin, Katie Shilton, Jeffery Smith
Place of Publication	Cham, Switzerland
Publisher	Springer, Springer Nature
Chapter	10
Pages	157-192
Number of pages	36
ISBN (Electronic)	9783031187940
ISBN (Print)	9783031187933
DOIs	https://doi.org/10.1007/978-3-031-18794-0_10
Publication status	Published - 2022
Externally published	Yes

Bibliographical note

Previously published in Journal of Business Ethics Volume 160, Issue 2, 2019. https://doi.org/10.1007/s10551-018-3949-4

Keywords

Tax avoidance
Corporate reputation
Board of directors
Chief executive officer (CEO)

Access to Document

10.1007/978-3-031-18794-0_10

Cite this

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The Impact of corporate tax avoidance on board of directors and CEO reputation. / Lanis, Roman; Richardson, Grant; Liu, Chelsea et al.
Business and the ethical implications of technology. ed. / Kirsten Martin; Katie Shilton; Jeffery Smith. Cham, Switzerland: Springer, Springer Nature, 2022. p. 157-192.

Research output: Chapter in Book/Report/Conference proceeding › Chapter › peer-review

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The Impact of corporate tax avoidance on board of directors and CEO reputation

Abstract

Bibliographical note

Keywords

Access to Document

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