Tax avoidance and debt maturity in SMEs

IF 9.4 3区 管理学 Q1 BUSINESS, FINANCE
Juan Pedro Sánchez-Ballesta, José Yagüe
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引用次数: 0

Abstract

We investigate how tax avoidance affects the maturity structure of debt in firms where tax avoidance costs are presumably low, namely SMEs. Previous research has shown that creditors of listed tax-avoiding companies impose shorter maturities to more frequently reassess the tax avoidance risks in debt contracts. Using a sample of 110,690 firm-year observations of Spanish SMEs over the period 2007–2020, we examine the relationship between tax avoidance and debt maturity and the channels driving this relationship. We find that tax-avoiding SMEs show a longer debt maturity. This effect is stronger for SMEs with higher profitability, lower earnings management incentives, and higher reliability of financial reporting. We also find that tax avoidance reduces leverage and short-term debt, increases future cash flows, and decreases future cash flow volatility. Overall, these findings suggest that, unlike large firms, SMEs use cash tax savings to reduce leverage and short-term debt in their financial structure and that tax avoidance is positively valued by their lenders.

中小企业的避税和债务到期问题
我们研究了避税如何影响避税成本较低的公司(即中小企业)的债务期限结构。以往的研究表明,避税上市公司的债权人会缩短债务期限,以便更频繁地重新评估债务合同中的避税风险。我们使用 2007-2020 年期间 110,690 个西班牙中小企业公司年观察样本,研究了避税与债务期限之间的关系以及推动这种关系的渠道。我们发现,避税的中小企业债务期限更长。对于盈利能力较强、盈利管理动机较低、财务报告可靠性较高的中小企业来说,这种效应更强。我们还发现,避税降低了杠杆率和短期债务,增加了未来现金流,并降低了未来现金流的波动性。总之,这些研究结果表明,与大型企业不同,中小企业利用现金节税来降低财务结构中的杠杆率和短期债务,而且其避税行为得到了贷款人的积极评价。
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来源期刊
CiteScore
9.10
自引率
2.00%
发文量
23
期刊介绍: The Journal of International Financial Management & Accounting publishes original research dealing with international aspects of financial management and reporting, banking and financial services, auditing and taxation. Providing a forum for the interaction of ideas from both academics and practitioners, the JIFMA keeps you up-to-date with new developments and emerging trends.
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