Affiliation:
1. Utah State University
2. The University of Arizona
Abstract
ABSTRACT
We examine the effect of CEO narcissism on an especially aggressive form of corporate tax avoidance: tax sheltering. Narcissism is a multifaceted personality trait associated with a sense of superiority and a propensity to engage in questionable behavior. Narcissists feel that they are above the law and are aggressive in pursuing what they believe is theirs. Narcissists also possess heightened motivations to pursue rewards or desirable outcomes while only being weakly motivated to avoid negative outcomes. Consistent with these behavioral tendencies of narcissistic individuals, we document statistically and economically significant effects of CEO narcissism on the likelihood that the CEO's firm engages in corporate tax shelters. Our study contributes to the literature by documenting a mechanism through which the individual personality characteristics of the CEO can affect firm-level tax policies.
JEL Classifications: H25; H26; M41.
Publisher
American Accounting Association
Reference71 articles.
1. Managerial overconfidence and accounting conservatism;Ahmed;Journal of Accounting Research,2013
2. Accounting as a facilitator of extreme narcissism;Amernic;Journal of Business Ethics,2010
3. The tax shelter battle;Bankman;The Crisis in Tax Administration,2004
4. Managing with style: The effect of managers on firm policies;Bertrand;The Quarterly Journal of Economics,2003
5. Some personality correlates of business white-collar crime;Blickle;Applied Psychology: An International Review,2006
Cited by
184 articles.
订阅此论文施引文献
订阅此论文施引文献，注册后可以免费订阅5篇论文的施引文献，订阅后可以查看论文全部施引文献