Assistant Professor of Accounting
Daniel Saavedra’s research on financial contracting explores how to design different types of contracts so that the incentives of all parties involved are properly aligned. He also studies the economic consequences to U.S. firms that engage in tax avoidance activities and examines whether lenders charge higher interest rates to borrowers that have made unusually large payments to tax authorities before contract initiation.
Syndicate voting rules reflect varying levels of trust and familiarity
18% of firms fail to promptly disclose new loan deals
Companies hide from shareholders information about loans — more than likely to appease banks
Companies that use loss carry-forwards to offset future tax liability, instead of claiming a refund, enjoy favorable lending terms