Banking deregulation and corporate tax avoidance

Banking deregulation and corporate tax avoidance

Blog Article

We investigate whether tax avoidance substitutes for external financing.We exploit interstate banking deregulation Tracker Accessories 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 Wooden House higher financial constraints or firms with higher external financing dependence.