کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
5093631 | 1478451 | 2014 | 15 صفحه PDF | دانلود رایگان |
- Tax aggressiveness, debt policy and board of director composition are examined.
- Tax aggressiveness is negatively correlated with debt.
- Outside directors are negatively correlated with debt.
- Outside directors magnify the negative link between tax aggressiveness and debt.
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.
Journal: Journal of Corporate Finance - Volume 25, April 2014, Pages 107-121