Gender diversity in corporate governance and tax avoidance: The moderating role of executive risk preference in emerging markets

This study examines how gender diversity within the board and the audit committee (AC), along with chief executive officer (CEO) gender, influences corporate tax avoidance as a business strategy, with particular emphasis on executive risk preferences. Drawing on agency theory and upper echelons theory, the study conceptualizes tax avoidance as an outcome shaped by governance effectiveness and managerial risk orientation (Dyreng et al., 2010; Hambrick, 2007). Using panel data from 429 observations of firms listed on the Indonesia Stock Exchange (IDX) during 2022–2024 and fixed-effects (FE) regression with firm-clustered robust standard errors, the findings show that greater gender diversity within the board is associated with higher levels of tax avoidance, suggesting that female representation may remain symbolic if it has no real influence on strategic decisions. In contrast, gender diversity within the AC reduces tax avoidance, indicating that competent female participation in oversight roles enhances compliance and strategic discipline. CEO gender shows no significant direct effect. High executive risk-taking weakens the effectiveness of ACs in constraining opportunistic tax strategies. Overall, this study shows that governance needs to be strengthened so that women’s presence is not merely symbolic. Gender diversity supports effective governance only when accompanied by substantial authority, relevant expertise, and a risk-aware organizational culture.