The Effects Of Female Executives On Corporate Tax Aggressiveness

With the development of economy and the change of The Times,traditional roles of Chinese women have changed,they are more and more important in the male-dominated business occupies.The rise of female executives has caused the attention of people from all walks of life,they believe that the unique personalities of female make them differ in risk appetite,decision-making and management style,affecting the enterprise’s important decision and financial behavior,as well as the enterprise’s tax decision and tax behavior.Tax aggressive behavior is a common behavior of enterprises(Lanis and Richardson,2011;Zhang Zhaoguo,2015),which has been the focus of academic and practical circles.The traditional concept that tax behavior can reduce the enterprises’ tax burden,increase corporate cash inflows,and thus enhance the value of the enterprises.However,studies have started to explore the behavior of tax factors and economic consequences based on tax that aggressive behavior is a manifestation of the enterprise agency problem(Zeng Shu and Li Qingyuan,2016).What is the reason?The existing literature on the effects of aggressive tax behavior provides extensive evidence,but there is little literature on the factors of executives analysis.Female executives are more risk averse,cautious in the financial decision making(Francis,2009).Thus,will female executives influence corporate tax decision?We use the sample of 2008-2014 years of A_shares listed companies,specificly studying the female CEO and female CFO,who are the key executives on the impact of tax decisions.Firstly,we examine the relationship of female executives and tax aggressiveness,and further study the effects of tax enforcement,internal control and compensation incentive.We find that:(1)the relationship between’ female CEO and corporate tax aggressive behavior is significantly negatively,while it is not significtant in female CFO,which may be caused by the traditional culture,CEO plays a decisive role in company’s decisions,and his personality and value can even reflect the characteristics and strategy of enterprises.And CFO’s career and salary contract are affected by CEO(Feng,2011).(2)The influence of the female CEO on the enterprise tax’s aggressive behavior is more significant,while the external tax enforcement and the internal control are stronger.(3)Female CEOs who have the incentive in conpesation,the degree of tax aggressiveness is relatively lower.This paper focuses on tax policy,analysing the influence mechanism of female executives on corporate aggressive tax activities,enriching the exising researches,and providing further evidence for the role of female executives in the enterprise financial decision.Futher more,it provides more evidence to support the "CFO pressure hypothesis" proposed by Feng et al(2011).This paper also provides some reference and inspiration for our country’s enterprise tax management and executive appointment.