Corporate Tax Integrity and the Cost of Debt: Evidence from China

被引：11
|
作者：
Wang, Pin [1 ]
Zhou, Ali [1 ]
Wang, Yi [2 ]
机构：
[1] Guangdong Polytech Normal Univ, Sch Finance & Econ, Guangzhou, Peoples R China
[2] Peking Univ, Guanghua Sch Management, Beijing, Peoples R China
来源：
EMERGING MARKETS FINANCE AND TRADE | 2022年 / 58卷 / 06期
关键词：
Corporate tax integrity; cost of debt; business risk; SOCIAL-RESPONSIBILITY; GOVERNMENT OWNERSHIP; NATIONAL CULTURE; TRUST;
D O I：
10.1080/1540496X.2021.1921731
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
This study examines whether and how tax integrity affects the cost of debt. Whereas most previous studies capture firms' trust indirectly, we capture a firm's earned trust more directly by using its tax-paying credit rating as a proxy. We find that tax integrity is negatively related to the cost of debt. We also examine whether the firm ownership affects the relationship between a firm's tax integrity and the cost of debt, and find a negative effect that is only significant for non-state-owned enterprises. Finally, we identify business risk as a channel through which tax integrity affects the cost of debt.
引用
收藏
页码：1702 / 1711
页数：10
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