Overconfidence and Corporate Tax Policy

• 成果类型: Article
• 署名作者: Chyz, James A.; Gaertner, Fabio B.; Kausar, Asad; Watson, Luke
• 署名单位: University of Tennessee System; University of Tennessee Knoxville; University of Wisconsin System; University of Wisconsin Madison; American University; Drexel University
• 刊物名称: REVIEW OF ACCOUNTING STUDIES
• ISSN/ISSBN: 1380-6653
• DOI: 10.1007/s11142-019-09494-z
• 发表日期: 2019
• 页码: 1114-1145
• 关键词: ceo overconfidence; UPPER ECHELONS; avoidance; Managers; style; incentives; executives; shelters; rates; price

摘要

Using a sample of firms experiencing exogenous CEO departures, we investigate whether firms with overconfident CEOs avoid more tax. We find robust evidence of a positive relation between proxies for corporate tax avoidance and CEO overconfidence. Because our empirical tests use a panel of firm-years with exogenous CEO departures and include controls for stationary firm effects as well as observable firm characteristics, we can better isolate the role of an idiosyncratic personality trait (i.e., overconfidence) on corporate tax outcomes, thus adding to the literatures on overconfidence, managerial effects, and tax avoidance.