06528oam 22014534 450 991077964300332120230802010347.01-4755-5221-11-4755-4068-X(CKB)2550000001041561(EBL)1607085(SSID)ssj0000943857(PQKBManifestationID)11593005(PQKBTitleCode)TC0000943857(PQKBWorkID)10983183(PQKB)11645444(MiAaPQ)EBC1607085(Au-PeEL)EBL1607085(CaPaEBR)ebr10661252(OCoLC)820377579(IMF)WPIEE2012281(IMF)WPIEA2012281(EXLCZ)99255000000104156120020129d2012 uf 0engurcn|||||||||txtccrTaxation and Leverage in International Banking /Grace Weishi Gu, Ruud A. Mooij, Tigran PoghosyanWashington, D.C. :International Monetary Fund,2012.1 online resource (36 p.)IMF Working PapersDescription based upon print version of record.1-4755-4938-5 1-4755-7220-4 Includes bibliographical references.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: Alternatives9. Robustness Check Estimation Results: Leverage Skewness and Tax Trend 10. Robustness Check Estimation Results: Subsamples; 11. Estimation Results: Capital TightnessThis 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.IMF Working Papers; Working Paper ;No. 2012/281TaxationEconometric modelsFinancial leverageEconometric modelsBanks and BankingimfFinancial Risk ManagementimfTaxationimfCorporate TaxationimfPersonal Finance -TaxationimfBanksimfDepository InstitutionsimfMicro Finance InstitutionsimfMortgagesimfFinancing PolicyimfFinancial Risk and Risk ManagementimfCapital and Ownership StructureimfValue of FirmsimfGoodwillimfBusiness Taxes and SubsidiesimfFinancial Institutions and Services: Government Policy and RegulationimfFinancial CrisesimfTaxation, Subsidies, and Revenue: GeneralimfPersonal Income and Other Nonbusiness Taxes and SubsidiesimfBankingimfCorporate & business taximfEconomic & financial crises & disastersimfPublic finance & taxationimfCorporate income taximfDeposit insuranceimfFinancial crisesimfDebt biasimfTaxesimfTax policyimfTax allowancesimfBanks and bankingimfCorporationsimfCrisis managementimfTax administration and procedureimfIncome taximfUnited StatesimfTaxationEconometric models.Financial leverageEconometric models.Banks and BankingFinancial Risk ManagementTaxationCorporate TaxationPersonal Finance -TaxationBanksDepository InstitutionsMicro Finance InstitutionsMortgagesFinancing PolicyFinancial Risk and Risk ManagementCapital and Ownership StructureValue of FirmsGoodwillBusiness Taxes and SubsidiesFinancial Institutions and Services: Government Policy and RegulationFinancial CrisesTaxation, Subsidies, and Revenue: GeneralPersonal Income and Other Nonbusiness Taxes and SubsidiesBankingCorporate & business taxEconomic & financial crises & disastersPublic finance & taxationCorporate income taxDeposit insuranceFinancial crisesDebt biasTaxesTax policyTax allowancesBanks and bankingCorporationsCrisis managementTax administration and procedureIncome taxGu Grace Weishi1476620Mooij Ruud A1476621Poghosyan Tigran1476622DcWaIMFBOOK9910779643003321Taxation and Leverage in International Banking3691361UNINA