The Effect of CEO Profile on Tax Aggressiveness

CEO as the symbol of the company usually reflects the company’s face. Many factors could affect CEO’s action especially in decision-making. Therefore, this paper aims to examine the effect of CEO profiles consisting of generation, gender, tenure, and nationality on tax aggressiveness. The Generation of CEO consist of four categories and becomes a new variable in this paper which is rarely discussed before. By using 161 firms for the period 2019-2021, we found that there is a significant negative effect of the CEO Generation on tax aggressiveness and significant positive effect of the CEO Nationality on tax aggressiveness. Interestingly, we did not find any significant effect of the CEO gender and tenure on tax aggressiveness. There are some limitations of our study. First, we only use CETR as our proxy to measure tax aggressiveness therefore we suggest using another proxy to measure tax aggressiveness like ETR, DDBTD, and DTAX can lead to different results. Our sample also shows significant comparison amounts of independent variable data.