The DOI matches its Crossref record; 3 of the 3 references it cites were found in a registry or an index.
Beauty is in the eye of the beholder: The effect of corporate tax avoidance on the cost of bank loans
Open accessAbstract
We find that firms with greater tax avoidance incur higher spreads when obtaining bank loans. This finding is robust in a battery of sensitivity analyses and in two quasi-experimental settings including the implementation of Financial Accounting Standards Board Interpretation No. 48 and the revelation of past tax sheltering activity. Firms with greater tax avoidance also incur more stringent nonprice loan terms, incur higher at-issue bond spreads, and prefer bank loans over public bonds when obtaining debt financing. Overall, these findings indicate that banks perceive tax avoidance as engendering significant risks.
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Citations
Cites
Financial intermediation and delegated monitoring
Diamond, D. W. (1984) · The Review of Economic Studies · doi:10.2307/2297430 · Cited by 8,476 · cited 1×
“…arm’s-length investors including public bondholders, banks are more apt to price the risks and rewards of tax avoidance because banks typically maintain long-term relationships with borrowing firms and have access to the firm’s proprietary information (e.g., Diamond, 1984; Fama, 1985; James, 1987).”
BackgroundCorporate Governance and Equity Prices
Gompers, P., Ishii, J., & Metrick, A. (2003) · The Quarterly Journal of Economics · doi:10.1162/00335530360535162 · Cited by 6,120
Some evidence on the uniqueness of bank loans
James, C. (1987) · Journal of Financial Economics · doi:10.1016/0304-405x(87)90003-1 · Cited by 1,610
Cited by
The Effect of Corporate Tax Avoidance on the Cost of Equity
Goh, B. W., Lee, J., Lim, C. Y., & Shevlin, T. J. (2013) · SSRN Electronic Journal · doi:10.2139/ssrn.2237742 · Cited by 422
Professors in the Boardroom and Their Impact on Corporate Governance and Firm Performance
Francis, B., Hasan, I., & Wu, Q. (2015) · Financial Management · doi:10.1111/fima.12069 · Cited by 328
Self-citationCORPORATE TAX AVOIDANCE: A LITERATURE REVIEW AND RESEARCH AGENDA
Wang, F., Xu, S., Sun, J., & Cullinan, C. P. (2020) · Journal of Economic Surveys · doi:10.1111/joes.12347 · Cited by 294
Powerful CEOs and stock price crash risk
Al Mamun, M., Balachandran, B., & Duong, H. N. (2020) · Journal of Corporate Finance · doi:10.1016/j.jcorpfin.2020.101582 · Cited by 257
Metadata
- Authors
- Hasan, I., Hoi, C. K. (., Wu, Q., & Zhang, H.
- Venue
- Journal of Financial Economics
- Publisher
- Elsevier BV
- Published
- 2014-07
- Volume
- 113
- Issue
- 1
- Pages
- 109-130
- ISSN
- 0304-405X (ISSN-L)
- OpenAlex
- W2159906343
- Cited by
- 653
- References
- 3
- FWCI
- 170.87
- Type
- journal article
- Language
- en
- Open access
- green
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- Hasan, I., Hoi, C. K. (., Wu, Q., & Zhang, H. (2014). Beauty is in the eye of the beholder: The effect of corporate tax avoidance on the cost of bank loans. Journal of Financial Economics. https://doi.org/10.1016/j.jfineco.2014.03.004
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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