Corporate tax aggressiveness, outside directors, and debt policy : An empirical analysis
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
| Original language | English |
|---|---|
| Pages (from-to) | 107-121 |
| Journal / Publication | Journal of Corporate Finance |
| Volume | 25 |
| Online published | 23 Nov 2013 |
| Publication status | Published - Apr 2014 |
Link(s)
Abstract
This study examines the influence of corporate tax aggressiveness on corporate debt policy (the debt-substitution effect) and the influence of outside directors on both debt and the debt-substitution effect. Based on a sample of 6967 firm-year observations over the 2001-2010 period, we find that tax aggressiveness is negatively correlated with debt. We also observe a negative correlation between debt and the proportion of outside directors on the board, and find that outside directors magnify the debt-substitution effect. Finally, we obtain similar results in analysis based on firms' debt issuance decisions. © 2013 Elsevier B.V.
Research Area(s)
- Corporate governance, Corporate tax aggressiveness, Debt policy, Outside directors
Citation Format(s)
Corporate tax aggressiveness, outside directors, and debt policy : An empirical analysis. / Richardson, Grant; Lanis, Roman; Leung, Sidney Chi-Moon.
In: Journal of Corporate Finance, Vol. 25, 04.2014, p. 107-121.Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
