We investigate the relation between tax risk and the cost of private debt. Tax risk can lead to significant negative … between the cost of borrowing and tax risk. In terms of economic significance, a one percent increase in our tax risk measure …, include more covenants, and issue smaller loans when borrowers have higher tax risk …

We hypothesize that the quality of market risk disclosure mandated by the U.S. Securities and Exchange Commission … Financial Reporting Release No. 48 (FRR No. 48) provides useful information for assessing risk management effectiveness …. Measuring risk disclosure quality as the degree of modification, we find that higher-than-expected disclosure modification is …