Chen, J. orcid.org/0000-0002-4076-7121, Mishra, T., Song, W. et al. (2 more authors) (2024) The Impact of Bank Mergers on Corporate Tax Aggressiveness. Journal of Corporate Finance, 84. 102540. ISSN 0929-1199
Abstract
We study whether borrowers’ opaque practices, such as tax aggressiveness, are affected by their lenders’ engagement in mergers and acquisitions (M&As). Our findings suggest that borrowers’ tax aggressiveness is negatively associated with bank mergers as banks increasingly rely on hard information in monitoring and lending practices following mergers. This relationship is more pronounced for borrowers that are more opaque in their information environments and have a greater need for credit, and when banks that have a greater intention to monitor borrowers and rely more on soft-information-based monitoring prior to the mergers. Our study contributes to the growing literature on whether and how bank consolidations affect borrowers’ decision making.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2024, Elsevier. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/. This is an author produced version of an article published in the Journal of Corporate Finance. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Tax aggressiveness, Banks, Mergers and acquisitions, Information transparency |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 04 Jan 2024 17:37 |
Last Modified: | 15 Jan 2024 17:00 |
Published Version: | https://www.sciencedirect.com/science/article/pii/... |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.jcorpfin.2024.102540 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:207059 |
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Filename: The Impact of Bank Mergers on Corporate Tax Aggressiveness.pdf
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