Tax avoidance and the cost of debt for SMEs: Evidence from Spain

Sánchez Ballesta, Juan Pedro; Yagüe, José

Publication:
Tax avoidance and the cost of debt for SMEs: Evidence from Spain

dc.contributor.author	Sánchez Ballesta, Juan Pedro
dc.contributor.author	Yagüe, José
dc.contributor.department	Organización de Empresas y Finanzas
dc.contributor.other	Facultades, Departamentos, Servicios y Escuelas::Departamentos de la UMU::Organización de Empresas y Finanzas	es
dc.date.accessioned	2023-12-20T13:05:35Z
dc.date.available	2023-12-20T13:05:35Z
dc.date.issued	2023
dc.description	©2023. 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 document is the Published version of a Published Work that appeared in final form in Journal of Contemporary Accounting and Economics. To access the final edited and published work see https://doi.org/10.1016/j.jcae.2023.100362	es
dc.description.abstract	We investigate the effect of tax avoidance on the cost of debt for SMEs. Tax avoidance may increase a firm’s cash flows on one hand, but also increase the agency costs, the information risk, and the risk of scrutiny by tax authorities on the other, affecting the cost of debt in opposing ways. Using a sample of Spanish SMEs for the period 2007-2019, our findings show that tax-avoiding SMEs face lower debt costs, suggesting that the positive effects of tax avoidance prevail over the negative ones for SMEs. This finding is consistent with a more favourable assessment of SMEs’ tax avoidance activities by their key finance providers (banks), given SME unique characteristics and their lower agency costs.	es
dc.format	application/pdf	es
dc.format.extent	14	es
dc.identifier.citation	Journal of Contemporary Accounting and Economics
dc.identifier.doi	https://doi.org/10.1016/j.jcae.2023.100362
dc.identifier.issn	1815-5669
dc.identifier.uri	http://hdl.handle.net/10201/136805
dc.language	eng	es
dc.relation	Sin financiación externa a la Universidad	es
dc.rights	info:eu-repo/semantics/openAccess	es
dc.rights	Attribution-NonCommercial-NoDerivatives 4.0 Internacional	*
dc.rights.uri	http://creativecommons.org/licenses/by-nc-nd/4.0/	*
dc.subject	Tax Avoidance	es
dc.subject	Debt cost	es
dc.subject	Banks	es
dc.subject	SMEs	es
dc.title	Tax avoidance and the cost of debt for SMEs: Evidence from Spain	es
dc.type	info:eu-repo/semantics/article	es
dspace.entity.type	Publication	es
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