This paper investigates the impact of chief financial officer (CFO) co-option on corporate tax avoidance. Using hand-collected data from a sample of nonfinancial listed firms included in the S&P350-Europe from 2013 to 2019, we find that firms with co-opted CFOs exhibit higher levels of tax avoidance. We also find that the board membership of co-opted CFOs moderates their propensity to engage in tax avoidance. These results introduce novel evidence about the role of CFOs in influencing firms’ levels of tax avoidance. They also shed light on the monitoring activity of the board of directors in the presence of board members who are also key decision-makers in tax strategies.

Chief financial officer co-option and tax avoidance in European listed firms

Gianluca Ginesti
Secondo
;
Alessandra Allini
Penultimo
;
Raffaela Casciello
Ultimo
2022

Abstract

This paper investigates the impact of chief financial officer (CFO) co-option on corporate tax avoidance. Using hand-collected data from a sample of nonfinancial listed firms included in the S&P350-Europe from 2013 to 2019, we find that firms with co-opted CFOs exhibit higher levels of tax avoidance. We also find that the board membership of co-opted CFOs moderates their propensity to engage in tax avoidance. These results introduce novel evidence about the role of CFOs in influencing firms’ levels of tax avoidance. They also shed light on the monitoring activity of the board of directors in the presence of board members who are also key decision-makers in tax strategies.
File in questo prodotto:
File Dimensione Formato  
Campa et al.2022_jaap.pdf

non disponibili

Tipologia: Documento in Post-print
Licenza: Accesso privato/ristretto
Dimensione 560.1 kB
Formato Adobe PDF
560.1 kB Adobe PDF   Visualizza/Apri   Richiedi una copia

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11588/863909
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact