Banking deregulation and corporate tax avoidance

Bill B. Francis, Ning Ren, Qiang Wu

Research output: Journal article publicationJournal articleAcademic researchpeer-review

5 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)87-104
Number of pages18
JournalChina Journal of Accounting Research
Volume10
Issue number2
DOIs
Publication statusPublished - Jun 2017
Externally publishedYes

Keywords

  • External financing
  • Interstate banking deregulation
  • Tax avoidance

ASJC Scopus subject areas

  • Accounting
  • Finance

Cite this