Author(s)

Ming-Lei Chang¹, Der-Fen Huang², Chan-Chuan Ting^1,3, Hui-Shan Chang¹

¹Department of Accounting, Chung Yuan Christian University, Chungli.
²Department of Accounting, National Dong Hwa University, Hualien.
³Ph.D. Program in Business, Chung Yuan Christian University, Chungli.

This paper investigates whether female chief executive officers (CEOs) perform different level of tax avoidance behavior compared with male CEOs in China. We further examine whether female CEOs with political background/connection can transform the relation between gender and tax avoidance behavior. Using the total book-tax differences and permanent book-tax differences to measure the level of tax avoidance behavior following prior studies, we find that Chinese female CEOs perform the same level of tax avoidance behavior relative to their male counterparts. In addition, we find significant evidence that female CEOs with political background tend to conduct more tax avoidance activities relative to those female CEOs without political relation. These results are in contrast to a traditional western viewpoint that female managers have a higher risk aversion attitude.

Gender, Political Connection, Tax Avoidance, Feminism

Chang, M. , Huang, D. , Ting, C. and Chang, H. (2019) Gender, Political Connection, and Tax Avoidance in China. Theoretical Economics Letters, 9, 2839-2863. doi: 10.4236/tel.2019.98178.