1.

Record Nr.

UNINA9910452741103321

Autore

Gu Grace

Titolo

Taxation and leverage in international banking [[electronic resource] /] / prepared by Grace Weishi Gu, Ruud de Mooij, and Tigran  Poghosyan

Pubbl/distr/stampa

Washington, D.C., : International Monetary Fund, c2012

ISBN

1-4755-5221-1

1-4755-4068-X

Descrizione fisica

1 online resource (36 p.)

Collana

IMF working paper ; ; WP/12/281

Altri autori (Persone)

MooijRuud A. de

PoghosyanTigran

Soggetti

Taxation - Econometric models

Financial leverage - Econometric models

Electronic books.

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

Description based upon print version of record.

Nota di bibliografia

Includes bibliographical references.

Nota di contenuto

Cover; Contents; I. Introduction; II. Theoretical Model; III. Empirical Methodology and Data; A. Methodology; B. Data; IV. Results; A. Baseline Regressions; B. Robustness Checks; C. Extension: Capital Tightness; V. Conclusions; References; Technical Appendix; Figures; 1. Bank Leverage Histogram; Tables; 1. Variable Source and Construction; 2. Summary Statistics; 3. Correlations; 4. Number of Banks; 5. Average Financial Leverage and Tax Rates; 6. Baseline Estimation Results; 7. Robustness Check Estimation Results: Standard Errors; 8. Robustness Check Estimation Results: Alternatives

9. Robustness Check Estimation Results: Leverage Skewness and Tax Trend 10. Robustness Check Estimation Results: Subsamples; 11. Estimation Results: Capital Tightness

Sommario/riassunto

This paper explores how corporate taxes affect the financial structure of multinational banks. Guided by a simple theory of optimal capital structure it tests (i) whether corporate taxes induce subsidiary banks to raise their debt-asset ratio in light of the traditional debt bias; and (ii) whether international corporate tax differentials vis-a-vis foreign subsidiary banks affect the intra-bank capital structure through international debt shifting. Using a novel subsidiary-level dataset for



558 commercial bank subsidiaries of the 86 largest multinational banks in the world, we find that taxes