دانلود رایگان مقاله انگلیسی تفاوت درآمد دفتری و مالیاتی و هزینه های بدهی های خصوصی - الزویر 2018

ABSTRACT

In this study, we test for associations between measures of book-tax differences (BTDs) and measures of private bank loan costs. Our measures of bank loan costs are: (1) interest rate spreads, and (2) security requirements. Initial results suggest a positive association between variability in total BTDs, but not levels, and private debt costs. After decomposing BTDs into their permanent and temporary components, we find that temporary BTDs (levels and variability) are consistently positively associated with costs of private debt, whereas permanent BTDs are not. Further, we find that the positive relation between BTDs and costs of private debt is attenuated for hightax-planning firms and is stronger for loan facilities in which leading lenders have high market shares. Consistent with the findings of Ayers, Laplante, and McGuire (2010), we interpret these results as indicative of BTDs generally impacting the precision of the information conveyed in the financial statements, raising concerns about earnings quality, except where the BTDs likely result from tax planning.

 Concluding remarks

This study examines whether book-tax differences (BTDs) are associated with private borrowing costs. Specifically, we examine whether total, permanent, and/or temporary BTDs relate to two separate proxies for private debt costs, interest rate spread and security requirements. We find that costs of private debt are generally increasing in the levels of and variability in temporary BTDs, but not permanent ones. We also find that the relation between BTDs and private debt costs holds for BTDs of both signs (i.e., positive and negative) and is stronger where lenders have especially high stakes in the private loan market (i.e., more experience and higher incentive to monitor). Further, our results suggest that tax planning impacts the association between BTDs and loan costs; the positive relation documented in our main results is mitigated for firms that engage in heavy tax planning activities. Overall, our results are consistent with BTDs raising concerns about earnings quality, resulting in a perception on the part of lenders of increased borrower risk and thus higher borrowing costs. Our findings further indicate that earnings quality-related concerns about risk are alleviated if the BTDs are generated by a high-tax-planning firm. Notwithstanding recent research documenting (mixed) evidence of a direct link between tax avoidance, measured using BTD-based proxies, and private loan costs (Hasan et al., 2014; Kim et al., 2010), our study provides evidence in a private debt setting that BTDs contain risk-relevant information beyond tax avoidance itself. Our findings on the interaction between book-tax differences and private debt costs contribute to our understanding of the role of tax and financial reporting in private debt contracting and to the growing literature examining the potential economic effects of the information (and related uncertainty) contained in BTDs. Our study extends and complements Ayers et al. (2010), which focuses on credit ratings (i.e., public debt). We provide evidence on the manner in which book-tax differences relate to costs of private debt, and together with Ayers et al. (2010), our results show that the information (and related uncertainty) contained in BTDs can impact debt markets on multiple dimensions.