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

Publication Type:
Journal Article
Citation:
Journal of Corporate Finance, 2014, 25 pp. 107 - 121
Issue Date:
2014-04-01
Full metadata record
Files in This Item:
Filename Description Size
JOCF_Debt_and_tax_Aggressiveness_Paper_18Sept_2013.docxAccepted Manuscript version130.8 kB
Microsoft Word XML
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.
Please use this identifier to cite or link to this item: