This paper investigates whether female chief executive officers (CEOs) perform different level of tax avoidance behavior compared with male CEOs in China. We further examine whether female CEOs with political background/connection can transform the relation between gender and tax avoidance behavior. Using the total book-tax differences and permanent book-tax differences to measure the level of tax avoidance behavior following prior studies, we find that Chinese female CEOs perform the same level of tax avoidance behavior relative to their male counterparts. In addition, we find significant evidence that female CEOs with political background tend to conduct more tax avoidance activities relative to those female CEOs without political relation. These results are in contrast to a traditional western viewpoint that female managers have a higher risk aversion attitude.

ABSTRACT

Auditing Standards No. 58 “Communication on Critical Audit Issues in Auditing Report” in April 12, 2016. These new standards effect and regulate public listed companies to keep step with international auditing standards starting from Year 2016. The purpose of this study is to explore the relationship between the changes in key audit matters and earnings management, and to understand the relationship between the changes in key audits and the degree of corporate earnings management. The results of the study show that after controlling the endogenous nature of earnings management variables through the two-stage method of instrumental variables, the degree of earnings management is significantly negatively correlated with the change in the number of accounting items disclosed in the key audits of the auditor's audit report. That is to say, when the degree of management of earnings management is higher, the possibility that the number of items of key check items increases is lower, When the degree of management of earnings management is higher, the probability of the number of items for key check items is reduced. and the tendency is not to change the disclosure items of key check items. Keywords: Key audit matters, Endogeneity, Earnings management.