Economic consequences of tax director departure

Abstract

Listen

Translate article

ABSTRACT This study investigates the economic consequences of the departure of a tax director. In addition, we examine whether the market reactions to such a departure are associated with the director’s gender. Using a sample of 471 U.S. firms, we find positive market reactions to the announcement of tax director departures. Our results further show lower cumulative abnormal returns for female tax directors than for male tax directors. Our findings suggest that the market values tax directors’ departure and gender. Our study has implications for practitioners in terms of the selection of tax directors.