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

Richardson, G; Lanis, R; Leung, SCM

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

Richardson, G Lanis, R

Leung, SCM

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Publication Type:: Journal Article
Citation:: Journal of Corporate Finance, 2014, 25 pp. 107 - 121
Issue Date:: 2014-01-01

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Field	Value	Language
dc.contributor.author	Richardson, G	en_US
dc.contributor.author	Lanis, R https://orcid.org/0000-0002-1821-8345	en_US
dc.contributor.author	Leung, SCM	en_US
dc.date.available	2020-05-25T19:05:55Z
dc.date.issued	2014-01-01	en_US
dc.identifier.citation	Journal of Corporate Finance, 2014, 25 pp. 107 - 121	en_US
dc.identifier.issn	0929-1199	en_US
dc.identifier.uri	http://hdl.handle.net/10453/33647
dc.identifier.uri	http://hdl.handle.net/10453/33650
dc.identifier.uri	http://hdl.handle.net/10453/33649
dc.identifier.uri	http://hdl.handle.net/10453/33648
dc.identifier.uri	http://hdl.handle.net/10453/33645
dc.description.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.	en_US
dc.relation.ispartof	Journal of Corporate Finance	en_US
dc.relation.isbasedon	10.1016/j.jcorpfin.2013.11.010	en_US
dc.subject.classification	Finance	en_US
dc.title	Corporate tax aggressiveness, outside directors, and debt policy: An empirical analysis	en_US
dc.type	Journal Article
utslib.citation.volume	25	en_US
utslib.for	1502 Banking, Finance and Investment	en_US
utslib.for	1501 Accounting, Auditing and Accountability	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Accounting Discipline
utslib.copyright.status	open_access
pubs.publication-status	Published	en_US
pubs.volume	25	en_US

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.

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http://hdl.handle.net/10453/33645