Is Tax Volatility Priced by Lenders in the Syndicated Loan Market?

References

• Altman, E. (1968). Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. Journal of Finance, 23, 589–609. doi: 10.1111/j.1540-6261.1968.tb00843.x
   Web of Science ®Google Scholar
• Asquith, P., Beatty, A., & Weber, J. (2005). Performance pricing in bank debt contracts. Journal of Accounting and Economics, 40, 101–128. doi: 10.1016/j.jacceco.2004.09.005
   Web of Science ®Google Scholar
• Angrist, J. D., & Pischke, J. (2009). Mostly harmless econometrics: An empiricist's companion. Princeton: Princeton University Press.
   Google Scholar
• Bertrand, M., & Schoar, A. (2003). Managing with style: The effect of managers on firm policies. Quarterly Journal of Economics, 118, 1169–1208. doi: 10.1162/003355303322552775
   Web of Science ®Google Scholar
• Bharath, S., Dahiya, S., Saunders, A., & Srinivasan, A. (2007). So what do I get? The bank’s view of lending relationships. Journal of Financial Economics, 85, 368–419. doi: 10.1016/j.jfineco.2005.08.003
   Web of Science ®Google Scholar
• Blouin, J., Gleason, C., Mills, L., & Sikes, S. (2010). Pre-empting disclosure? Firms’ decisions prior to FIN No. 48. The Accounting Review, 85, 791–815. doi: 10.2308/accr.2010.85.3.791
   Web of Science ®Google Scholar
• Chava, S., & Roberts, M. R. (2008). How does financing impact investment? The role of debt covenants. Journal of Finance, 63(5), 2085–2121. doi: 10.1111/j.1540-6261.2008.01391.x
   Web of Science ®Google Scholar
• Crocker, K. J., & Slemrod, J. (2005). Corporate tax evasion with agency costs. Journal of Public Economics, 89, 1593–1610. doi: 10.1016/j.jpubeco.2004.08.003
   Web of Science ®Google Scholar
• Drake, K., Lush, S., & Stekelberg, J. (2017). Does tax risk affect investor valuation of tax avoidance? Journal of Accounting, Auditing & Finance, forthcoming.
   Web of Science ®Google Scholar
• Dyreng, S., Hanlon, M., & Maydew, E. (2008). Long-run corporate tax avoidance. The Accounting Review, 83, 61–82. doi: 10.2308/accr.2008.83.1.61
   Web of Science ®Google Scholar
• Fahlenbrach, R., Prilmeier, R., & Stulz, R. (2012). This time is the same: Using bank performance in 1998 to explain bank performance during the recent financial crisis. The Journal of Finance, 67(6), 2139–2185. doi: 10.1111/j.1540-6261.2012.01783.x
   Web of Science ®Google Scholar
• Frank, M., Lynch, L., & Rego, S. (2009). Tax reporting aggressiveness and its relation to aggressive financial reporting. The Accounting Review, 84, 467–496. doi: 10.2308/accr.2009.84.2.467
   Web of Science ®Google Scholar
• Gorton, G., & Winton, A. (2003). Financial intermediation. In G. Constantinides, M. Harris, & R. Stulz (Eds.), The handbook in the economics of finance: Corporate finance (Vol. 1A, pp. 431–552). Amsterdam: Elsevier.
   Google Scholar
• Graham, J. R., Li, S., & Qiu, J. (2008). Corporate misreporting and bank loan contracting. Journal of Financial Economics, 89, 44–61. doi: 10.1016/j.jfineco.2007.08.005
   Web of Science ®Google Scholar
• Graham, J., Raedy, J. S., & Shackelford, D. (2012). Research in accounting for income taxes. Journal of Accounting and Economics, 53, 412–434. doi: 10.1016/j.jacceco.2011.11.006
   Web of Science ®Google Scholar
• Guenther, D. A., Matsunaga, S. R., & Williams, B. M. (2017). Is tax avoidance related to firm risk? The Accounting Review, 92(1), 115–136. doi: 10.2308/accr-51408
   Web of Science ®Google Scholar
• Hanlon, M., Maydew, E., & Saavedra, D. (2017). The taxman cometh: Does tax uncertainty affect corporate cash holdings? Review of Accounting Studies, 22(3), 1198–1228. doi: 10.1007/s11142-017-9398-y
   Web of Science ®Google Scholar
• Hasan, I., Hoi, C., 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, 113(1), 109–130. doi: 10.1016/j.jfineco.2014.03.004
   Web of Science ®Google Scholar
• Hutchens, M., & Rego, S. O. (2015). Does greater tax risk lead to increased firm risk? (Working paper), University of Illinois and Indiana University.
   Google Scholar
• Isin, A. (2018). Tax avoidance and cost of debt: The case for loan-specific risk mitigation and public debt financing. Journal of Corporate Finance, 49, 344–378. doi: 10.1016/j.jcorpfin.2018.01.003
   Web of Science ®Google Scholar
• Jacob, M., Wentland, K., & Wentland, S. (2017). Real effects of tax uncertainty: Evidence from firm capital investments (George Mason University and Otto Beisheim School of Management working paper).
   Google Scholar
• Kim, J., Li, Y., & Li, Y. (2010). Corporate tax avoidance and bank loan contracting (Working paper).
   Google Scholar
• Lisowsky, P. A., Mescall, D., Novack, G., & Pittman, J. (2013). The importance of tax aggressiveness to corporate borrowing costs (Working paper).
   Google Scholar
• Mallor, J., Barnes, J., Bowers, T., & Langvardt, A. (2010). Business law: The ethical, global, and e-commerce environment. New York: McGraw-Hill.
   Google Scholar
• Malmendier, U., & Nagel, S. (2011). Depression babies: Do macroeconomic experiences affect risk taking? Quarterly Journal of Economics, 126, 373–416. doi: 10.1093/qje/qjq004
   Web of Science ®Google Scholar
• Malmendier, U., Tate, G., & Yan, J. (2011). Overconfidence and early-life experiences: The effect of managerial traits on corporate financial policies. Journal of Finance, 66, 1687–1733. doi: 10.1111/j.1540-6261.2011.01685.x
   Web of Science ®Google Scholar
• McGuire, S., Neuman, S., & Omer, T. (2013). Sustainable tax strategies and earnings persistence (Working paper). Texas A&M University.
   Google Scholar
• Merton, R. (1974). On the pricing of corporate debt: The risk structure of interest rates. The Journal of Finance, 29(2), 449–470.
   Web of Science ®Google Scholar
• Nini, G., Smith, D., & Sufi, A. (2009). Creditor control rights and firm investment policy. Journal of Financial Economics, 92, 400–420. doi: 10.1016/j.jfineco.2008.04.008
   Web of Science ®Google Scholar
• Rauh, J., & Sufi, A. (2010). Capital structure and debt structure. Review of Financial Studies, 23(12), 4242–4280. doi: 10.1093/rfs/hhq095
   Web of Science ®Google Scholar
• Saavedra, D. (2017). Syndicate size and the choice of covenants in debt contracts. The Accounting Review, forthcoming.
   Web of Science ®Google Scholar
• Saavedra, D. (2018). Debt maturity, investments, and the choice of covenants (Working paper, UCLA).
   Google Scholar
• Saavedra, D., & Hughes, J. S. (2017). The information content of forgoing tax refunds: Evidence from private debt contracts (Working paper, UCLA).
   Google Scholar
• Shevlin, T., Urcan, O., & Vasvari, F. (2013). Corporate tax avoidance and public debt costs (Working paper). Irvine: University of California.
   Google Scholar
• Standard & Poors. (2014). A guide to the loan market. New York: Standard & Poor's.
   Google Scholar
• Sufi, A. (2007). Information asymmetry and financing arrangements: Evidence from syndicated loans. Journal of Finance, 62, 629–668. doi: 10.1111/j.1540-6261.2007.01219.x
   Web of Science ®Google Scholar
• Sufi, A. (2009). Bank lines of credit in corporate finance: An empirical analysis. Review of Financial Studies, 22, 1057–1088. doi: 10.1093/revfin/hhm007
   Web of Science ®Google Scholar
• Taylor, A., & Sansone, A. (2007). The handbook of loan syndications and trading. New York: McGraw-Hill.
   Google Scholar
• Weisbach, D. (2002). Ten truths about tax shelters. Tax Law Review, 5, 215.
   Google Scholar
• Wight, R., Cooke, W., & Gray, R. (2009). The LSTA’s complete credit agreement guide. New York: McGraw-Hill.
   Google Scholar
• Wittenberg-Moerman, R. (2008). The role of information asymmetry and financial reporting quality in debt trading: Evidence from the secondary loan market. Journal of Accounting and Economics, 46(2–3), 240–260. doi: 10.1016/j.jacceco.2008.08.001
   Web of Science ®Google Scholar