Munch and Learn: CEO Military Experience and Corporate Tax Haven Investment: Evidence from China

Friday, Aug. 23, 10-11 a.m.

BN-4031

Abstract: Emerging-market multinational enterprises (EMNEs) have invested considerably in tax havens in recent years, a business practice that is considered ethically dubious and has been criticized by various stakeholders such as politicians, regulators, and citizen groups. We examine how CEO military experience is related to corporate tax haven investment by EMNEs. Based on the notion that military experience instills such values as ethics, self-sacrifice, and social responsibility, we hypothesize that CEO military experience is negatively associated with corporate tax haven investment, and that this relationship is less negative for CEOs with professional business education and more negative for state-owned enterprises (SOEs). With a sample of Chinese listed companies in the manufacturing sector for the period from 2010 to 2020, we found strong support for our hypotheses. This study enhances our understanding of corporate tax haven investment, especially for EMNEs, and has important research and practical implications.

Bio: Ziyi Wang is a visiting doctoral student in the Faculty of Business Administration at MUN. She is a third-year doctoral student from Fudan University, Shanghai, China. Her research interests focus on strategic leadership and international business.

Presented by Faculty of Business Administration

Event Listing 2024-08-23 10:00:00 2024-08-23 11:00:00 America/St_Johns Munch and Learn: CEO Military Experience and Corporate Tax Haven Investment: Evidence from China Abstract: Emerging-market multinational enterprises (EMNEs) have invested considerably in tax havens in recent years, a business practice that is considered ethically dubious and has been criticized by various stakeholders such as politicians, regulators, and citizen groups. We examine how CEO military experience is related to corporate tax haven investment by EMNEs. Based on the notion that military experience instills such values as ethics, self-sacrifice, and social responsibility, we hypothesize that CEO military experience is negatively associated with corporate tax haven investment, and that this relationship is less negative for CEOs with professional business education and more negative for state-owned enterprises (SOEs). With a sample of Chinese listed companies in the manufacturing sector for the period from 2010 to 2020, we found strong support for our hypotheses. This study enhances our understanding of corporate tax haven investment, especially for EMNEs, and has important research and practical implications. Bio: Ziyi Wang is a visiting doctoral student in the Faculty of Business Administration at MUN. She is a third-year doctoral student from Fudan University, Shanghai, China. Her research interests focus on strategic leadership and international business. BN-4031 Faculty of Business Administration