Do creditor control rights impact corporate tax aggressiveness? Evidence from debt covenant violations

IF 2.2 3区管理学 Q2 BUSINESS, FINANCE Journal of Business Finance & Accounting Pub Date : 2023-08-01 DOI:10.1111/jbfa.12742

C. S. Agnes Cheng, Bill B. Francis, Zhi Li, Bernard, Yinjie Shen, Qiang Wu

引用次数: 0

Abstract

We examine the effect of bank interventions on corporate tax aggressiveness via the lens of debt covenant violations. Using three identification strategies, we find that bank interventions have a negative effect on corporate tax aggressiveness. This effect is less pronounced for more financially constrained firms, firms with higher shareholder power and firms facing less powerful banks. Covenant-violating firms compensate their reduced tax aggressiveness by reducing other expenditures, including capital expenditures and cash acquisitions. Our results suggest that creditors perceive aggressive tax activities as risky investment opportunities.

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债权人控制权会影响公司的税收侵略性吗？违反债务契约的证据

我们从违反债务契约的角度研究了银行干预对企业税收侵略性的影响。利用三种识别策略，我们发现银行干预对企业税收侵略性有负面影响。对于财务约束较强的公司、股东权力较大的公司以及面对权力较小的银行的公司，这种影响并不明显。违反契约的企业会通过减少其他支出（包括资本支出和现金收购）来补偿其税收积极性的降低。我们的研究结果表明，债权人认为激进的税务活动是有风险的投资机会。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Business Finance & Accounting BUSINESS, FINANCE-

CiteScore

4.40

自引率

17.20%

发文量

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