Banking deregulation and corporate tax avoidance

Banking deregulation and corporate tax avoidance

Blog Article

We investigate whether Halters 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 Bowl Adapter this substitutive relation, even for firms with higher financial constraints or firms with higher external financing dependence.