Weitere Artikel dieser Ausgabe durch Wischen aufrufen
The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They should not be attributed to the European Commission.
This paper studies the link between corporate income tax (CIT) reforms and domestic banks’ financing decisions. We use a dataset of CIT reforms and estimate the effect of tax rate changes on leverage, dividend policies and earnings management of banks. The results suggest that taxation influences all three variables. Leverage increases with the CIT rate in the first three years after the reform. The reason is that the statutory CIT rate determines the value of the debt tax shield. A higher tax rate increases incentives to use debt finance when interest payments are deductible from the CIT base. The tax effects we find are statistically and economically significant but considerably lower than those found in previous research. Also, dividend pay-outs increase after an increase in CIT rates. This could indicate that banks actively manage their pay-out policies around tax reforms and adjust their capital structure with changes in dividends. Furthermore, banks increase loss loan reserves in anticipation of tax rate cuts since losses become less valuable with lower CIT rates.
Bitte loggen Sie sich ein, um Zugang zu diesem Inhalt zu erhalten
Sie möchten Zugang zu diesem Inhalt erhalten? Dann informieren Sie sich jetzt über unsere Produkte:
Abiad, A., Detragiache, E., & Tressel, T. (2009). A new database of financial reforms. IMF Staff Papers, 57(2), 281–302. CrossRef
Ahmed, A. S., Takeda, C., & Thomas, S. (1999). Bank loan loss provisions: A reexamination of capital management, earnings management and signaling effects. Journal of Accounting and Economics, 28(1), 1–25. CrossRef
Ali Abbas, S. M., Klemm, A., Park, J., & Bedi, S. (2012). A partial race to the bottom: Corporate tax developments in emerging and developing economies. Working Paper. International Monetary Fund, Washington, DC.
Alworth, J., & Arachi, G. (2001). The effect of taxes on corporate financing decisions: Evidence from a panel of Italian firms. International Tax and Public Finance, 8(4), 353–376. CrossRef
Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. The Review of Economic Studies, 58(2), 277–297. CrossRef
Barth, J. R., Caprio, G., & Levine, R. (2001). The regulation and supervision of banks around the world: A new database. Brookings-Wharton Papers on Financial Services, 2001(1), 183–240. CrossRef
Barth, J. R., Caprio, G., & Levine, R. (2008). Bank regulations are changing: For better or worse? Comparative Economic Studies, 50(4), 537–563. CrossRef
Barth, J. R., Caprio, G., & Levine, R. (2012, December). The evolution and impact of bank regulations. Working Paper. The World Bank, Washington, DC.
Beatty, A., Chamberlain, S. L., & Magliolo, J. (1995). Managing financial reports of commercial banks: The influence of taxes, regulatory capital, and earnings. Journal of Accounting Research, 33(2), 231–261. CrossRef
Berger, A. N., DeYoung, R., Flannery, M. J., Lee, D., & Öztekin, Ö. (2008). How do large banking organizations manage their capital ratios? Journal of Financial Services Research, 34(2–3), 123–149. CrossRef
Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87(1), 115–143. CrossRef
Brewer, E, I. I. I., Kaufman, G. G., & Wall, L. D. (2008). Bank capital ratios across countries: why do they vary? Journal of Financial Services Research, 34(2—-3), 177–201. CrossRef
Buettner, T., Overesch, M., Schreiber, U., & Wamser, G. (2012). The impact of thin-capitalization rules on the capital structure of multinational firms. Journal of Public Economics, 96(11–12), 930–938. CrossRef
De Mooij, R. A. (2011). The tax elasticity of corporate debt: A synthesis of size and variations (No. 11/95). Working Paper. International Monetary Fund, Washington, DC.
De Mooij, R. A. (2011). Tax biases to debt finance? Assessing the problem, finding solutions. Working Paper. International Monetary Fund, Washington, DC.
DeAngelo, H., & Masulis, R. W. (1980). Optimal capital structure under corporate and personal taxation. Journal of Financial Economics, 8(1), 3–29. CrossRef
Denis, D., & Osobov, I. (2008). Why do firms pay dividends? International evidence on the determinants of dividend policy. Journal of Financial Economics, 89(1), 62–82. CrossRef
Desai, M. A., Foley, C. F., & Hines, J. R, Jr. (2004). A multinational perspective on capital structure choice and internal capital markets. Journal of Finance, LIX(6), 2451–2487. CrossRef
European Commission. (2012). Growth-firendly tax policies in member states and better tax coordination in the EU. Annex to the communication from the commission to the European Parliament, the Council, the European Economic and Social Committee of Regions, 5 (2011).
Fama, E. F., & French, K. R. (2001). Disappearing dividends? Changing firm characteristics or lower propensity to pay? Journal of Financial Economics, 60, 3–43. CrossRef
Fama, E. F., & Harvey, B. (1968). Dividend policy: An empirical analysis. Journal of the American Statistical Association, 63(324), 1132–1161. CrossRef
Fatica, S., Hemmelgarn, T., & Nicodème, G. (2012). The debt–equity tax bias: Consequences and solutions. Working Paper. European Commission.
Feld, L. P., Heckemeyer, J. H., & Overesch, M. (2013). Capital structure choice and company taxation? A meta-study. Journal of Banking and Finance (forthcoming).
Fenn, G. W., & Liang, N. (2001). Corporate payout policy and managerial. Journal of Financial Economics, 60, 45–72. CrossRef
Ferris, S. P., Sen, N., & Yui, H. P. (2006). God save the queen and her dividends: Corporate payouts in the United Kingdom. The Journal of Business, 79(3), 1149–1173. CrossRef
Fiscal Affairs Department. (2009). Debt bias and other distortions: Crisis-related issues in tax policy. International Monetary Fund Report.
Flannery, M. J., & Rangan, K. P. (2006). Partial adjustment toward target capital structures. Journal of Financial Economics, 79(3), 469–506. CrossRef
Flannery, M. J., & Rangan, K. P. (2008). What caused the bank capital build-up of the 1990s? Review of Finance, 12(2), 391–429. CrossRef
Frank, M. Z., & Goyal, V. K. (2009). Capital structure decisions: Which factors are reliably important? Financial Management, 38(1), 1–37. CrossRef
Fuest, C., & Hemmelgarn, T. (2005). Corporate tax policy, foreign firm ownership and thin capitalization. Regional Science and Urban Economics, 35(5), 508–526. CrossRef
Givoly, D., Hayn, C., Ofer, A. R., & Sarig, O. (1992). Taxes and capital structure: Evidence from firms’ response to the tax reform act of 1986. Review of Financial Studies, 5(2), 331–355. CrossRef
Graham, J. R. (2000). How big are the tax benefits of debt? Journal of Finance, 55(5), 1901–1941. CrossRef
Graham, J. R., & Leary, M. T. (2011). A review of empirical capital structure research and directions for the future. Annual Review of Financial Economics, 3(1), 309–345. CrossRef
Gropp, R. (2002). Local taxes and capital structure choice. International Tax and Public Finance, 9(2002), 51–71. CrossRef
Gropp, R., & Heider, F. (2010). The determinants of bank capital structure. Working Paper No. 1096. European Central Bank.
Gropp, R., & Heider, F. (2010). The determinants of bank capital structure. Review of Finance, 14(4), 587–622. CrossRef
Gu, G. W., de Mooij, R., & Poghosyan, T. (2012). Taxation and leverage in international banking. Working Paper. International Monetary Fund.
Guenther, D. A. (1994). Earnings management in response to corporate tax rate changes: Evidence from the 1986 Tax Reform Act. The Accounting Review, 69(1), 230–243.
Gwilym, O., Seaton, J., Suddason, K., & Thomas, S. (2006). Earnings, evidence dividends, on the and payout returns ratio. Financial Analysts Journal, 62(1), 36–53. CrossRef
Hanlon, M., & Heitzman, S. (2010). A review of tax research. Journal of Accounting and Economics, 50(2–3), 127–178. CrossRef
Harris, M., & Raviv, A. (1991). The theory of capital structure. Journal of Finance, 46(1), 297. CrossRef
Hartmann-Wendels, T., Stein, I., & Stöter, A. (2012). Tax incentives and capital structure choice: Evidence from Germany. Discussion Paper. Deutsche Bundesbank.
Hu, A., & Kumar, P. (2004). Managerial entrenchment and payout policy. Journal of Financial and Quantitative Analysis, 39(December), 759–790. CrossRef
IMF. (2008). Financial stress and deleveraging—Macrofinancial implications and policy. Washington, DC: International Monetary Fund.
IMF. (2012). World economic and financial surveys. World economic outlook, October 2012—Coping with high debt and sluggish growth. International Monetary Fund, Washington, DC.
IMF. (2013). Fiscal monitor, October 2013—Taxing times. Washington, DC: International Monetary Fund.
Jagannathan, M., Stephens, C. P., & Weisbach, M. S. (2000). Financial flexibility and the choice between dividends and stock repurchases. Journal of Financial Economics, 57, 355–384. CrossRef
Kaufmann, D., Kraay, A., & Mastruzzi, M. (2007). Governance matters VI? Aggregate and individual governance indicators 1996–2006. Policy Research Working Paper No. 4280. The World Bank, Washington, DC.
Keen, M., & de Mooij, R. A. (2012). Debt, taxes, and banks. Working Paper No. 12/48. International Monetary Fund, Washington, DC.
Kennedy, P. (2008). A guide to econometrics (6th ed., p. 600). Malden, MA: Wiley-Blackwell.
Lintner, J. (1956). Distribution of incomes of corporations among dividends, retained earnings, and taxes. American Economic Review, 46(2), 97–113.
MacKie-Mason, J. K. (1990). Do taxes affect corporate financing decisions? Journal of Finance, 45(5), 1471–1493. CrossRef
Maydew, E. L. (1997). Tax-induced earnings management by firms with net operating losses. Journal of Accounting Research, 35(1), 83–96. CrossRef
Miller, M. H. (1977). Debt and taxes. Journal of Finance, 32(2), 261–275.
Mishkin, F. S. (2009). The economics of money, banking and financial markets (9th ed., p. 756). Upper Saddle River: Prentice Hall.
Modigliani, F., & Miller, M. H. (1958). The cost of capital, corporation finance and the theory of investment. American Economic Review, 48(3), 261.
Modigliani, F., & Miller, M. H. (1963). Corporate income taxes and the cost of capital: A correction. American Economic Review, 53(3), 433–443.
Myers, S. C. (1984). The capital structure puzzle. Journal of Finance, 39(3), 574–592. CrossRef
Myers, S. C. (2001). Capital structure. Journal of Economic Perspectives, 15(2), 81–102. CrossRef
Myers, S. C., & Majluf, N. S. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13(2), 187–221. CrossRef
Ongena, S., Popov, A., & Udell, G. F. (2013). When the cat’s away the mice will play: Does regulation at home affect bank risk-taking abroad? Journal of Financial Economics (forthcoming).
Overesch, M., & Voeller, D. (2010). The impact of personal and corporate taxation on capital structure choices. FinanzArchiv: Public Finance Analysis, 66(3), 263–294. CrossRef
Petersen, M. (2009). Estimating standard errors in finance panel data sets: Comparing approaches. Review of Financial Studies, 22(1), 435–480. CrossRef
Peura, S., & Keppo, J. (2006). Optimal bank capital with costly recapitalization. Journal of Business, 79(4), 2163–2201. CrossRef
Renneboog, L., & Trojanowski, G. (2005, February). Patterns in payout policy and payout channel choice of UK firms in the 1990s. ECGI Working Paper Series in Finance.
Roodman, D. (2009). How to do xtabond2? An introduction to difference and system GMM in stata. The Stata Journal, 1, 86–136.
Scholes, M. S., Wilson, G. P., & Wolfson, M. A. (1990). Tax planning, regulatory capital planning, and financial reporting strategy for commercial banks. Review of Financial Studies, 3(4), 625–650. CrossRef
Schreiber, U. (2008). Besteuerung der Unternehmen: Eine Einführung in Steuerrecht und Steuerwirkung (2nd ed., p. 898). New York: Springer.
Sharma, V. (2011). Independent directors and the propensity to pay dividends. Journal of Corporate Finance, 17(4), 1001–1015. CrossRef
Sunley, E. M. (2003). Coporate income tax treatment of loan-loss reserves. Taxation of financial intermediation: Theory and practice for emerging economies (directions in development) (p. 464). Washington, DC: World Bank Publications.
Warfield, T. D., & Linsmeier, T. J. (1992). Tax planning, earnings management, and the differential information content of bank earnings components. The Accounting Review, 67(3), 546–562.
Wooldridge, J. M. (2002). Econometric analysis of cross section and panel data (p. 752). Cambridge, MA: MIT Press.
Wooldridge, J. M. (2008). Introductory econometrics (4th ed., p. 888). South-Western Cengage Learning.
- Tax reforms and the capital structure of banks
- Springer US
microm, Neuer Inhalt/© Stellmach, Neuer Inhalt/© Maturus, Pluta Logo/© Pluta, Avaloq/© Avaloq Evolution AG, Avaloq/© Avaloq