Adnan Isin joined the Business School in 2018. Previously he was an Associate Lecturer in Department of Economics and Related Studies at University of York, where he thought courses on Corporate Finance and Capital Markets at undergraduate and postgraduate levels. Preceding that, he was an Associate Research Fellow at Tax Administration Research Centre at University of Exeter. He holds a master’s degree in Finance and Investments and PhD in Finance both from University of Exeter.
Qualifications
Ph.D. MSc - Finance
Research interests
- Corporate Finance
- Corporate Taxation,
- Corporate Financial and Investment Policies
- Corporate Financial Reporting
- Banking and Financial Institutions
- Credit Ratings
Key publications | Publications by category | Publications by year
Publications by category
Journal articles
Isin AA (2018). Tax avoidance and cost of debt: the case for loan-specific risk mitigation and public debt financing.
Journal of Corporate Finance,
49, 344-378.
Abstract:
Tax avoidance and cost of debt: the case for loan-specific risk mitigation and public debt financing
© 2018 Elsevier B.V. Examining the syndicate loans market for publicly traded U.S. firms I show that tax avoidance is positively related to loan spreads. Importantly, however, tax-specific premiums disappear for loans with large number of co-leads, which facilitate credit risk diversification, for loans with performance pricing provisions, which facilitate borrower-lender incentive alignment, and for borrowers with CDS contracts, which facilitate credit risk transfer. Moreover, non-bank institutional investors demand higher risk premiums to compensate for their high-risk investment strategies that also account for tax-specific risks and do not have particular focus on tax-specific risk taking. Finally, I show that simultaneous access to private and public debt financing, which reflects greater firm-level financial flexibility and fewer hold-up problems, largely mitigates agency risks associated with all forms of tax avoidance. These syndicate-level risk-mitigating measures work jointly well and are more effective, ex-ante, at moderating tax-specific risks in comparison to maintenance-based covenant structures alone. These results help identify channels through which firms can mitigate non-tax costs associated with tax avoidance and, hence, effectively pursue strategies that persistently reduce their corporate tax liabilities without incurring material agency costs.
Abstract.
Full text.
DOI.
Publications by year
2018
Isin AA (2018). Tax avoidance and cost of debt: the case for loan-specific risk mitigation and public debt financing.
Journal of Corporate Finance,
49, 344-378.
Abstract:
Tax avoidance and cost of debt: the case for loan-specific risk mitigation and public debt financing
© 2018 Elsevier B.V. Examining the syndicate loans market for publicly traded U.S. firms I show that tax avoidance is positively related to loan spreads. Importantly, however, tax-specific premiums disappear for loans with large number of co-leads, which facilitate credit risk diversification, for loans with performance pricing provisions, which facilitate borrower-lender incentive alignment, and for borrowers with CDS contracts, which facilitate credit risk transfer. Moreover, non-bank institutional investors demand higher risk premiums to compensate for their high-risk investment strategies that also account for tax-specific risks and do not have particular focus on tax-specific risk taking. Finally, I show that simultaneous access to private and public debt financing, which reflects greater firm-level financial flexibility and fewer hold-up problems, largely mitigates agency risks associated with all forms of tax avoidance. These syndicate-level risk-mitigating measures work jointly well and are more effective, ex-ante, at moderating tax-specific risks in comparison to maintenance-based covenant structures alone. These results help identify channels through which firms can mitigate non-tax costs associated with tax avoidance and, hence, effectively pursue strategies that persistently reduce their corporate tax liabilities without incurring material agency costs.
Abstract.
Full text.
DOI.
Awards and honours
- Business School Scholarship for PhD in Finance – Essays on Corporate Risk Management
Ad-hoc Reviewer
- European Accounting Review
- Journal of the American Taxation Association
Professional Memberships
- American Accounting Association
- American Taxation Association
- Financial Management Association
- European Accounting Association
- European Finance Association
- American Finance Association
Teaching interests
- Corporate Finance
- Financial Accounting
- Banking and Financial Markets
- Company Valuation
Modules
2020/21