CEO ATTRIBUTES AND CORPORATE TAX AVOIDANCE IN THE EAST AFRICA COMMUNITY
CEO ATTRIBUTES AND CORPORATE TAX AVOIDANCE IN THE EAST AFRICA COMMUNITY
Samuel Andrew Makokha - PhD Student, Moi University, Eldoret, Kenya
Prof. Lucy Rono - Moi University, Eldoret, Kenya
Dr. Peter Githaiga - Moi University, Eldoret, Kenya
ABSTRACT
Purpose- The present paper provides new empirical evidence on the relationship between CEO attributes and tax avoidance among listed firms in the East Africa Community Design/methodology/approach- The study uses data hand-picked from companies listed on the EAC partner states Stock/Securities Exchange during the period 2012–2023. Findings- The findings suggest that the CEO age and tenure are negatively associated with tax avoidance. The regression results further reveal a positive relationship between CEO expertise and tax avoidance. CEO gender has no effect on tax avoidance. The results remain robust for an alternative regression estimation models that accounts for the possibility of endogeneity. Practical implication- The findings may provide valuable insights to policy makers and investors. This study suggests that CEO age, tenure and expertise are important factors in determining firms’ avoidance practices among corporate entities. Thus, shareholders apprehend the impact of appointing younger CEO on tax avoidance practices. This study may also provide regulators with new insights into the influence of CEO attributes on tax avoidance practices in developing countries. The findings also refute the general argument linking CEO’s gender to tax avoidance. Originality- This study contributes to the literature on CEO characteristics and tax avoidance decisions by providing additional evidence from a developing region perspective.
