CEO Sports Hobby and Firms’ Tax Aggressiveness

Shuqing Luo, Terry Shevlin, Lirong Shi, Aimee Shih

    Research output: Journal PublicationArticlepeer-review

    1 Citation (Scopus)


    Recent accounting research suggests that individual executives play a significant role in shaping a firm’s tax planning. Building on psychology research that finds sports interests reflect an individual’s risk-taking preferences, we develop a novel measure of innate and non-pecuniary CEO risk attitudes based on the riskiness of CEOs’ sports hobbies and examine whether the measure is associated with corporate tax aggressiveness. We find that firms managed by CEOs with riskier sports hobbies are more aggressive in their tax planning. This association is more pronounced for CEOs with greater financial incentives and greater power in making decisions. Our results are robust to using alternative measures of CEO sports risks, and after accounting for the self-selection of the disclosure of CEO sports hobbies. Data Availability: Public sources cited in the paper. JEL Classifications: H26; M41; G41; G34.

    Original languageEnglish
    Pages (from-to)123-153
    Number of pages31
    JournalJournal of the American Taxation Association
    Issue number1
    Publication statusPublished - Jan 2022


    • CEO risk preferences
    • sports hobbies
    • tax aggressiveness

    ASJC Scopus subject areas

    • Accounting
    • Finance


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