Banking deregulation and corporate tax avoidance

Bill B. Francis; Ning Ren; Qiang Wu

doi:10.1016/j.cjar.2016.09.004

Banking deregulation and corporate tax avoidance

Bill B. Francis, Ning Ren, Qiang Wu

Research output: Journal article publication › Journal article › Academic research › peer-review

9 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 language	English
Pages (from-to)	87-104
Number of pages	18
Journal	China Journal of Accounting Research
Volume	10
Issue number	2
DOIs	https://doi.org/10.1016/j.cjar.2016.09.004
Publication status	Published - Jun 2017
Externally published	Yes

Keywords

External financing
Interstate banking deregulation
Tax avoidance

ASJC Scopus subject areas

Accounting
Finance

More information

10.1016/j.cjar.2016.09.004

Cite this

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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.",

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Banking deregulation and corporate tax avoidance

Abstract

Keywords

ASJC Scopus subject areas

More information

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