Top management’s financial experience, backgrounds in regulatory and non-regulatory financial institutions, and corporate tax aggressiveness
研究中国上市公司高管在监管或非监管金融机构的从业经历如何影响企业税收激进程度，发现非监管机构背景的高管更倾向激进避税，且机构投资者和监管处罚会加剧这一行为，但此类策略能提升企业未来价值。
Purpose We investigate how top management team (TMT) members with experience in regulatory financial institutions (e.g. insurance companies, commercial and investment banks, fund management firms, securities depositories, futures and trust, and investment management entities) or non-regulatory financial institutions (e.g. stock exchanges, policy banks, and regulatory commissions) influence tax aggressiveness. We further examine how institutional investors and regulatory violation pressure moderate this relationship and explore the firm value implications of strategic tax planning led by financial executives. Design/methodology/approach We analyze 21,912 firm-year observations from 3,186 Chinese listed firms. Baseline ordinary least squares (OLS ) models include industry, year, and province fixed effects. Robustness and endogeneity are addressed using weighted least squares (WLS), propensity score matching (PSM), entropy balancing, dynamic system generalized method of moments (GMM), executive-turnover event analyses, Granger causality tests, instrumental-variable two-stage least squares (2SLS) estimations, and firm fixed effects. Findings Firms led by top executives (e.g. CEOs) with financial expertise tend to exhibit lower effective tax rates (ETRs) and larger book–tax differences. Notably, executives with experience in non-regulatory financial institutions are more likely to pursue aggressive tax strategies, whereas those with backgrounds in regulatory institutions show no significant effect. Furthermore, we find that institutional investors amplify the tax aggressiveness of financially expert executives and that these executives become more aggressive in tax avoidance following regulatory sanctions. Finally, these tax strategies are highly associated with higher future firm value when led by financially expert executives. Originality/value We contribute new insights to the literature by examining how top executives with prior experience in both regulatory-oriented and non-regulatory financial institutions influence future tax planning and firm value, drawing on upper echelons and imprinting theories.