Board busyness and financial leverage: The impact of corporate tax avoidance
研究了中国上市公司董事会忙碌程度对财务杠杆的影响，发现忙碌的独立董事会抑制激进避税，导致企业更多依赖外部债务融资，从而推高杠杆水平。
Abstract This study investigates the impact of “busy” independent directors on corporate financial leverage. Using a sample of 3321 Chinese listed firms from 2004 to 2019, we find that firms with busier boards tend to have higher leverage, with corporate tax avoidance acting as a mediating mechanism. Supporting the reputational incentive hypothesis, busy boards discourage aggressive tax avoidance strategies that would otherwise allow managers to accumulate excess cash reserves. Consequently, these firms become more reliant on external debt financing to meet potential investment needs. Our findings highlight the role of “busy” independent directors in mitigating agency conflicts and shaping financial strategies.