| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 7339831 | Advances in Accounting | 2017 | 8 Pages |
Abstract
We investigate the association between tax aggressiveness and corporate debt maturity, and we find strong evidence that shorter debt maturity is more prevalent for tax aggressive firms. The results survive numerous robustness tests, including controlling for compensation-induced incentives for risk-taking, firm and CEO effects, changes regressions, and instrumental variables estimation. The results suggest that lenders view tax aggressiveness as a risky activity and therefore restrict the maturity structure of debt to provide a monitoring mechanism for debt contracts with tax-aggressive borrowers. We conclude that tax aggressiveness has a meaningful influence on debt contracting.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
Thomas R. Kubick, G. Brandon Lockhart,