Consistent with an agency theory of tax avoidance, this study investigates the extent to which tax avoidance results in a less timely annual earnings announcement. Using 16,340 firm-years spanning the period 1993–2010, evidence is presented suggesting tax avoidance that manifests through...

This study examines whether equity misvaluation is associated with credit risk. One could argue that credit risk is not associated with equity misvaluation because equity misvaluation is noisy information relative to the intrinsic value of a borrower. Instead, we hypothesize and find a nonlinear...

We examine the role that earnings predictability plays in establishing a firm’s cost of debt capital by measuring its influence on establishing a new issue’s bond rating. In addition, we also examine the effects of earnings predictability on the initial pricing of the firm’s debt. Using...