Do UK outside CEOs engage more in tax planning than the insiders?

Firms engage in tax planning to varying extents. One potential determinant of such variations may be the characteristics of senior executives. The objective of this study is to investigate whether CEO origin (insiders or outsiders) and departing CEO tenure are significant in explaining the extent...

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Main Authors:	Nor Shaipah Abdul Wahab, Holland, Kevin, Soobaroyen, Teerooven
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2015
Online Access:	http://journalarticle.ukm.my/9613/ http://journalarticle.ukm.my/9613/ http://journalarticle.ukm.my/9613/1/12185-33203-1-SM.pdf

id	ukm-9613
recordtype	eprints
spelling	ukm-96132016-12-14T06:50:27Z http://journalarticle.ukm.my/9613/ Do UK outside CEOs engage more in tax planning than the insiders? Nor Shaipah Abdul Wahab, Holland, Kevin Soobaroyen, Teerooven Firms engage in tax planning to varying extents. One potential determinant of such variations may be the characteristics of senior executives. The objective of this study is to investigate whether CEO origin (insiders or outsiders) and departing CEO tenure are significant in explaining the extent of corporate tax planning. The sample is non-financial London Stock Exchange listed firms from 2005 to 2011. Upon regressing tax planning on CEO origin, departing CEO tenure and other control variables, we find robust evidence that outsiders are associated with higher levels of tax planning than the insiders. Our results also reveal a negative moderating influence of departing CEO tenure on tax planning levels of current CEOs. Collectively, this paper provides the first UK evidence on the influence of CEO origin and departing CEO tenure on tax planning. This paper has important implications for tax authorities since it highlights CEO characteristics can be relevant indicators in a tax avoidance-risk assessment exercise. The findings will also be of interest to management and its board when considering factors of interest in a turnover scenario. Penerbit Universiti Kebangsaan Malaysia 2015 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/9613/1/12185-33203-1-SM.pdf Nor Shaipah Abdul Wahab, and Holland, Kevin and Soobaroyen, Teerooven (2015) Do UK outside CEOs engage more in tax planning than the insiders? Jurnal Pengurusan, 45 . pp. 1-19. ISSN 0127-2713 http://ejournals.ukm.my/pengurusan/issue/view/749
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	Firms engage in tax planning to varying extents. One potential determinant of such variations may be the characteristics of senior executives. The objective of this study is to investigate whether CEO origin (insiders or outsiders) and departing CEO tenure are significant in explaining the extent of corporate tax planning. The sample is non-financial London Stock Exchange listed firms from 2005 to 2011. Upon regressing tax planning on CEO origin, departing CEO tenure and other control variables, we find robust evidence that outsiders are associated with higher levels of tax planning than the insiders. Our results also reveal a negative moderating influence of departing CEO tenure on tax planning levels of current CEOs. Collectively, this paper provides the first UK evidence on the influence of CEO origin and departing CEO tenure on tax planning. This paper has important implications for tax authorities since it highlights CEO characteristics can be relevant indicators in a tax avoidance-risk assessment exercise. The findings will also be of interest to management and its board when considering factors of interest in a turnover scenario.
format	Article
author	Nor Shaipah Abdul Wahab, Holland, Kevin Soobaroyen, Teerooven
spellingShingle	Nor Shaipah Abdul Wahab, Holland, Kevin Soobaroyen, Teerooven Do UK outside CEOs engage more in tax planning than the insiders?
author_facet	Nor Shaipah Abdul Wahab, Holland, Kevin Soobaroyen, Teerooven
author_sort	Nor Shaipah Abdul Wahab,
title	Do UK outside CEOs engage more in tax planning than the insiders?
title_short	Do UK outside CEOs engage more in tax planning than the insiders?
title_full	Do UK outside CEOs engage more in tax planning than the insiders?
title_fullStr	Do UK outside CEOs engage more in tax planning than the insiders?
title_full_unstemmed	Do UK outside CEOs engage more in tax planning than the insiders?
title_sort	do uk outside ceos engage more in tax planning than the insiders?
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2015
url	http://journalarticle.ukm.my/9613/ http://journalarticle.ukm.my/9613/ http://journalarticle.ukm.my/9613/1/12185-33203-1-SM.pdf
first_indexed	2023-09-18T19:55:22Z
last_indexed	2023-09-18T19:55:22Z
_version_	1777406492910026752

Do UK outside CEOs engage more in tax planning than the insiders?

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