Tax Footnotes Readability and CEO Narcissism: Evidence from Indonesia

Arfian Erma Zudana; Kiddy  Novian; Rakha Pangestu  Setiawan; Sherlin Sherlin

doi:10.21512/becossjournal.v4i1.7786

Authors

Arfian Erma Zudana Bina Nusantara University
Kiddy Novian Accounting Department, Faculty of Economics & Communication Bina Nusantara University Jakarta, Indonesia 11480
Rakha Pangestu Setiawan Bina Nusantara University
Sherlin Sherlin Bina Nusantara University

DOI:

https://doi.org/10.21512/becossjournal.v4i1.7786

Keywords:

CEO characteristics, CEO narcissism, Tax Footnotes, Readability

Abstract

CEO Narcissism has the potency to influence individual characteristics positively or negatively. We aim to examine the relationship between narcissism as CEO-level characteristics and tax footnotes readability. We measure narcissism using the CEOs’ photos on the firms’ annual reports. Using 799 firm-year Indonesia listed firms from 2015 through 2019, we find that higher CEO narcissism is related to a higher tax footnote readability. This result is robust for alternative measures of readability. By examining the relationship between CEO narcissism and tax footnotes readability, we provide an additional important factor to boards for consideration during the CEO selection. We also offer insight for shareholders or investors to consider CEO traits, namely narcissism, in assessing and interpreting tax footnotes readability.

Dimensions

Plum Analytics

Author Biographies

Arfian Erma Zudana, Bina Nusantara University

Accounting Department, Faculty of Economics & Communication

Rakha Pangestu Setiawan, Bina Nusantara University

Accounting Department, Faculty of Economics & Communication

Sherlin Sherlin, Bina Nusantara University

Accounting Department, Faculty of Economics & Communication

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