We investigate whether variation in the volatility of tax outcomes across firms is associated with the extent of financial constraints. We document a positive association between current‐period financial constraints and the volatility of cash effective tax rates in subsequent periods. We find that this positive association becomes more pronounced as firms avoid more cash taxes. These results suggest that as financial constraints increase, the benefits of cash tax savings more likely outweigh the costs associated with more volatile tax outcomes. Recent research documents a negative association between financial constraints and the level of cash taxes paid. Our evidence suggests that tax strategies adopted by more financially constrained firms to increase cash tax savings come at the price of more volatile future tax rates.

中文翻译：

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财务限制和未来税收结果的波动

我们调查了公司间税收结果波动性的变化是否与财务约束的程度有关。我们记录了当期财务约束与后续期间现金有效税率波动之间的正相关关系。我们发现随着企业避免缴纳更多的现金税，这种积极的联系变得更加明显。这些结果表明，随着财务约束的增加，现金税收节省的收益更有可能超过与波动性更大的税收结果相关的成本。最近的研究表明，财务约束与支付的现金税水平之间存在负相关关系。我们的证据表明，财务上受到更多限制的公司采用的增加现金节税的税收策略是以更不稳定的未来税率为代价的。