The Role of Managerial Ability in Corporate Tax Avoidance

• Published in: Management science Vol. 63; no. 10; pp. 3285 - 3310
• Main Authors: Koester, Allison, Shevlin, Terry, Wangerin, Daniel
• Format: Journal Article
• Language: English
• Published: Linthicum INFORMS 01.10.2017; Institute for Operations Research and the Management Sciences
• Subjects: Ability; Analysis; Corporate income taxes; Corporate taxes; Income taxes; Management; management style; Management techniques; managerial ability; Managerial skills; Managers; Methods; Payments; R&D; Research & development; State taxes; Tax avoidance; Tax evasion; Tax havens; Tax planning; Tax policy; Tax rates; Taxation

Most prior studies model tax avoidance as a function of firm-level characteristics and do not consider how individual executive characteristics affect tax avoidance. This paper investigates whether executives with superior ability to efficiently manage corporate resources engage in greater tax avoid...