What question did this study set out to answer?

The study investigates how the work experience of low-tax CFOs affects corporate tax avoidance.

April 8, 2026

CFO work experience, tax strategy diffusion and corporate tax avoidance

Puntos clave

The study investigates how the work experience of low-tax CFOs affects corporate tax avoidance.
Analyzed a sample of S&P 1,500 firms from 1992 to 2017
Employed ordinary least squares regression with fixed effects
Used difference-in-difference and propensity score matching analyses to address endogeneity
CFOs with low-tax company experience are linked to higher levels of tax avoidance
The effect is stronger in firms similar to the CFO's prior employer
CFOs with accounting expertise enhance the impact on tax avoidance

Resumen

Purpose This study aims to investigate the influence of low-tax experienced CFOs on corporate tax avoidance. Design/methodology/approach The study uses a sample of S&P 1,500 firms from 1992 to 2017. The study uses ordinary least squares regression with fixed effects. In addition, the study uses difference-in-difference and propensity score matching analyses to mitigate endogeneity concerns. Findings Firms with CFOs who have previously worked at low-tax companies tend to engage in more tax avoidance than their counterparts. This effect is more pronounced in companies that are operational similar to the CFO’s previous employer, and in firms where the CFOs have accounting expertise. Originality/value This study sheds light on how executives’ work experience influences corporate tax avoidance, emphasizing the crucial role of diffusing tax planning strategies.

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Cite This Study

Tri Trinh (Mon,) studied this question.

synapsesocial.com/papers/69d5f07d74eaea4b11a79ed2 https://doi.org/https://doi.org/10.1108/cg-10-2024-0518

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