1.

Record Nr.

UNINA9910968240603321

Autore

Gu Grace Weishi

Titolo

Taxation and Leverage in International Banking / / Grace Weishi Gu, Ruud A. Mooij, Tigran Poghosyan

Pubbl/distr/stampa

Washington, D.C. : , : International Monetary Fund, , 2012

ISBN

9781475552218

1475552211

9781475540680

147554068X

Edizione

[1st ed.]

Descrizione fisica

1 online resource (36 p.)

Collana

IMF Working Papers

Altri autori (Persone)

MooijRuud A

PoghosyanTigran

Disciplina

332.1532

Soggetti

Taxation - Econometric models

Financial leverage - Econometric models

Banking

Banks and Banking

Banks and banking

Banks

Business Taxes and Subsidies

Capital and Ownership Structure

Corporate & business tax

Corporate income tax

Corporate Taxation

Corporations

Crisis management

Debt bias

Deposit insurance

Depository Institutions

Economic & financial crises & disasters

Financial Crises

Financial crises

Financial Institutions and Services: Government Policy and Regulation

Financial Risk and Risk Management

Financial Risk Management

Financing Policy

Goodwill

Income tax

Micro Finance Institutions



Mortgages

Personal Finance -Taxation

Personal Income and Other Nonbusiness Taxes and Subsidies

Public finance & taxation

Tax administration and procedure

Tax allowances

Tax policy

Taxation

Taxation, Subsidies, and Revenue: General

Taxes

Value of Firms

United States

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 matter significantly, through both the traditional debt bias channel and the international debt shifting that is due to the international tax differentials. The latter channel is more robust and tends to be quantitatively more important. Our results imply that taxation causes significant international debt spillovers through multinational banks, which has potentially important implications for tax policy.