Abstract

We studied the relationship between CEO tenure and future tax burden. We measured tax burden as corporate tax burden. The test results show that CEO tenure had a positive relation with future corporate tax burden. These results suggest that long CEO tenure is a factor that increases future tax burden. We test whether CEO tenure has any additional effect on the relation between ROA(CFO) and future corporate tax burden. The test results show that CEO tenure increases the positive relation between ROA and future corporate tax burden. However, CEO tenure does not have any additional effect on the positive relation between CFO and future corporate tax burden. This can be interpreted as CEO tenure increases the incentive for earnings management, increasing future tax burden. This study suggests that long CEO tenure contributes to the incentive to increase net income through earnings management. This is expected to provide implications that long tenure of executives can be a negative factor in the quality of financial reporting.

Keywords

• CEO Tenure
• Corporate Tax Burden
• Earnings Management

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