03752nam 2200649Ia 450 991082416030332120200520144314.01-4755-5221-11-4755-4068-X(CKB)2550000001041561(EBL)1607085(SSID)ssj0000943857(PQKBManifestationID)11593005(PQKBTitleCode)TC0000943857(PQKBWorkID)10983183(PQKB)11645444(Au-PeEL)EBL1607085(CaPaEBR)ebr10661252(OCoLC)820377579(IMF)WPIEE2012281(IMF)WPIEA2012281(MiAaPQ)EBC1607085(EXLCZ)99255000000104156120121205d2012 uy 0engurcn|||||||||txtccrTaxation and leverage in international banking /prepared by Grace Weishi Gu, Ruud de Mooij, and Tigran Poghosyan1st ed.Washington, D.C. International Monetary Fundc20121 online resource (36 p.)IMF working paper ;WP/12/281Description 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 modelsTaxationEconometric models.Financial leverageEconometric models.332.1532Gu Grace1753424Mooij Ruud A. de1753423Poghosyan Tigran1600315MiAaPQMiAaPQMiAaPQBOOK9910824160303321Taxation and leverage in international banking4189290UNINA