Older and wiser? The impact of CEO age on firm's tax amnesty participation

The objective of this research is to examine the potential impact of CEO age on the involvement of companies in tax amnesty programs among publicly traded companies in Indonesia. With differing opinions on how age affects risk-taking behavior, this study attempts to clarify the issue. The researchers gathered and examined 210 firm-year records to create the main dataset for analysis. To investigate the relationship between CEO age and tax amnesty participation, statistical approaches such as correlation, logistic regression analysis, and propensity score matching (PSM) were utilized as analytical tools. The results show a negative association between the age of the CEO and their readiness to participate in tax amnesty, indicating that older CEOs may view tax amnesty as a dangerous endeavor and be less inclined to take part. This negative association was further supported by an additional analysis of two tax amnesty programs, one from 2016 and the other from 2017. It showed that older CEOs tended to behave in a more risk-averse manner. Because of the possible risks, they are therefore less likely to take part in tax amnesty initiatives. Overall, this study advances knowledge on how CEO age affects business decision-making and sheds light on the factors influencing tax amnesty program participation.