Tax avoidance and Credit Rating association

Daria Orlova

Master's thesis

Anotácia:

In this research, I present the analysis of the relationship between credit rating and tax avoidance. I found out that the lower the cash effective tax rate the stronger the association with credit rating. Sensitivity analysis showed that the probability of falling into more favorable credit rating category is increases and the probability of falling into less favorable category decreases if cash effective tax rate increases at least by 1%. Also, the negative association between book-tax differences and credit rating found.

Abstract:

In this research, I present the analysis of the relationship between credit rating and tax avoidance. I found out that the lower the cash effective tax rate the stronger the association with credit rating. Sensitivity analysis showed that the probability of falling into more favorable credit rating category is increases and the probability of falling into less favorable category decreases if cash effective tax rate increases at least by 1%. Also, the negative association between book-tax differences and credit rating found.

Kľúčové slová

Tax avoidance, Credit rating, Book-tax differences, Cash effective tax rate

Keywords

Book-tax differences, Ta avoidance, Credit rating, Cash effective tax rate

Jazyk práce: English

Datum vytvoření / odevzdání či podání práce: 1. 11. 2016

Obhajoba závěrečné práce

• Obhajoba proběhla 15. 6. 2017
• Vedúci: Christoph Watrin
• Oponent: Jan Molín

Vysoká škola ekonomická v Praze

Master programme:
Finance and Accounting