Tax Director Characteristics and Market Reactions: Does Legal Education and Network Size Matter?

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Mengyu Ma

Abstract

This study analyses whether there is a correlation between market reactions to tax director departure announcements and the legal education and network size of directors. Unfavourable market reactions to the departure announcements of tax directors with law degrees (i.e. J.D. or LL.M.) were found in a sample of 346 US departure announcements. The findings suggest that companies with departing tax directors with larger network experience negative cumulative abnormal returns. This has implications for practitioners in their selection of tax directors.

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How to Cite
Mengyu Ma. (2025). Tax Director Characteristics and Market Reactions: Does Legal Education and Network Size Matter?. European Economic Letters (EEL), 14(4), 2040–2044. https://doi.org/10.52783/eel.v14i4.2347
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