Year: 2016
Type: article
Abstract: We investigate whether tax avoidance substitutes for external financing. We exploit interstate banking deregulation as a quasi-external shock to examine whether firms engage in less tax avoidance after banking deregulation, because of cheaper and easier access to credit from banks. We find no empirical evidence to support this substitutive relation, even for firms with higher financial constraints or firms with higher external financing dependence.
Authors: Bill B. Francis, Ning Ren, Qiang Wu
Institutions: Rensselaer Polytechnic Institute, Long Island University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $1,800
OpenAlex ID: W3124640571