TY  - CHAP
AB  - Abstract This study examines how creditor interventions after debt covenant violations affect corporate tax avoidance. Using a regression discontinuity design, we find that creditor interventions increase borrowers' tax avoidance. This effect is concentrated among firms with weaker shareholder governance before creditor interventions and among those with less bargaining power during subsequent debt renegotiations. Our results indicate that creditors play an active role in shaping corporate tax policy outside of bankruptcy.
VL  - 27
SN  - 978-1-83909-185-8, 978-1-83909-186-5/1058-7497
DO  - 10.1108/S1058-749720200000027001
UR  - https://doi.org/10.1108/S1058-749720200000027001
AU  - Cook Kirsten
AU  - Ma Tao
AU  - Zhao Yijia (Eddie)
ED  - John Hasseldine
PY  - 2020
Y1  - 2020/01/01
TI  - Do Creditors Influence Corporate Tax Planning? Evidence from Loan Covenants
T2  - Advances in Taxation
T3  - Advances in Taxation
PB  - Emerald Publishing Limited
SP  - 1
EP  - 42
Y2  - 2024/04/24
ER  -