CEO Overconfidence and Tax Aggressiveness: The Role of CEO Age and Firm Size

Nur Listiani (), Supramono Supramono (), Theresia Woro Damayanti () and Yeterina Widi Nugrahanti
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Nur Listiani: Alumni of Doctoral Program in Management, Faculty of Economics and Business, Satya Wacana Christian University, Indonesia
Supramono Supramono: Faculty of Economics and Business, Satya Wacana Christian University, Indonesia
Theresia Woro Damayanti: Faculty of Economics and Business, Satya Wacana Christian University, Indonesia
Yeterina Widi Nugrahanti: Faculty of Economics and Business, Satya Wacana Christian University, Indonesia

Oradea Journal of Business and Economics, 2025, vol. 10, issue 2, 85-99

Abstract: This study aims to investigate the effects of CEO overconfidence on tax aggressiveness and analyses the role of CEO age and firm size as moderators. The study conducted 590 observations of manufacturing firms listed on the Indonesia Stock Exchange from 2010 to 2019. The data was analyzed using the FGLS method. The results show that CEO overconfidence leads to the practice of tax aggressiveness. Other results confirmed that the CEO age strengthens the CEO overconfidence effect to practice tax aggressiveness. Furthermore, this study found that the firm size enhances the effect of CEO overconfidence to engage in tax aggressiveness. These findings suggest that manufacturing firms should not allow managers to exhibit overconfidence, considering that it can raise the likelihood of tax aggressiveness practices, which can be detrimental to the firm’s long-term performance.

Keywords: CEO overconfidence; tax aggressiveness; CEO age; firm size (search for similar items in EconPapers)
JEL-codes: G41 H26 M41 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ora:jrojbe:v:10:y:2025:i:2:p:85-99

DOI: 10.47535/1991ojbe219

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