Exploring the Relationship Between Chief Executive Officer Attributes and Loss Avoidance Behaviour in Listed Companies in Vietnam

Background: The contemporary corporate governance framework positions the Chief Executive Officer (CEO) in a pivotal role regarding strategic financial decisions, including tax reporting strategies. Behaviour aimed at loss avoidance (sustaining a minimum profit level to protect corporate or personal image and secure performance-based compensation) constitutes an implicit form of non-compliance, serving as a sophisticated mechanism of circumvention within the legal framework. Objective: This study aims to empirically investigate the influence of CEO personal attributes—specifically gender, age, and expertise—on corporate loss-avoidance behaviour among listed non-financial companies in Vietnam. Methodology: The research utilises an extensive panel dataset collected from 206 non-financial companies listed on the Ho Chi Minh Stock Exchange (HOSE) over 10 years (2014–2023), resulting in 2,060 firm-year observations. The econometric analysis employs the System Generalised Method of Moments (SGMM) to mitigate model defects, such as endogeneity, and robustness is assessed using the Robust framework. Result: The empirical findings demonstrate a positive, significant relationship between female CEOs and loss-avoidance behaviour. Conversely, the results reveal an inhibitory effect of older CEOs on this same behaviour. Overall, the study establishes a distinct link between CEO demographic attributes and strategic loss-avoidance behaviour in Vietnamese non-financial companies. Conclusion: This investigation concludes that CEO personal characteristics are significant determinants of strategic tax compliance behaviour (proxied by loss avoidance) in an emerging market setting. The findings suggest that managerial attributes contribute measurably to the quality of financial reporting. Unique Contribution: This study offers a new theoretical and empirical perspective by identifying specific CEO attributes that influence loss-avoidance behaviour and framing this conduct as a sophisticated, implicit expression of strategic tax compliance within Vietnam's regulatory environment. Key Recommendation: We propose that policymakers and regulatory authorities utilise these findings to enhance the quality of financial information by developing policies and corporate governance practices that account for the varying impacts of CEO attributes on strategic loss-avoidance behaviour.