Corporate tax aggressiveness, outside directors, and debt policy: An empirical analysis

Grant Richardson; Roman Lanis; Sidney Chi-Moon Leung

doi:10.1016/j.jcorpfin.2013.11.010

Author(s)

Grant Richardson
Roman Lanis
Sidney Chi-Moon Leung

Related Research Unit(s)

Department of Accountancy

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)

DOI	DOI https://doi.org/10.1016/j.jcorpfin.2013.11.010 Final Published version
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Link to Scopus	https://www.scopus.com/record/display.uri?eid=2-s2.0-84890174139&origin=recordpage
Permanent Link	https://scholars.cityu.edu.hk/en/publications/publication(3401f6fa-6222-4289-8acb-22212548581d).html

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

SDG 17 - Partnerships for the Goals

Citation Format(s)

[ RIS ] [ BibTeX ]

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 - Publication in refereed journal › peer-review

Richardson, G, Lanis, R & Leung, SC-M 2014, 'Corporate tax aggressiveness, outside directors, and debt policy: An empirical analysis', Journal of Corporate Finance, vol. 25, pp. 107-121. https://doi.org/10.1016/j.jcorpfin.2013.11.010

Richardson, G., Lanis, R., & Leung, S. C.-M. (2014). Corporate tax aggressiveness, outside directors, and debt policy: An empirical analysis. Journal of Corporate Finance, 25, 107-121. https://doi.org/10.1016/j.jcorpfin.2013.11.010

Richardson G, Lanis R, Leung SCM. Corporate tax aggressiveness, outside directors, and debt policy: An empirical analysis. Journal of Corporate Finance. 2014 Apr;25:107-121. Epub 2013 Nov 23. doi: 10.1016/j.jcorpfin.2013.11.010

Richardson, Grant ; Lanis, Roman ; Leung, Sidney Chi-Moon. / Corporate tax aggressiveness, outside directors, and debt policy : An empirical analysis. In: Journal of Corporate Finance. 2014 ; Vol. 25. pp. 107-121.

Corporate tax aggressiveness, outside directors, and debt policy : An empirical analysis