Taxation and Corporate Debt : Are Banks any Different? / Jost Heckemeyer, Ruud A. Mooij.

Format:

Book

Government document

Author/Creator:

Heckemeyer, Jost.

Contributor:

Mooij, Ruud A.

International Monetary Fund.

Series:

IMF Working Papers; Working Paper ; No. 2013/221

IMF working paper ; WP/13/221

IMF Working Papers

Language:

English

Subjects (All):

Corporate debt.

Corporations--Taxation.

Corporations.

Bank loans.

Physical Description:

1 online resource (30 p.)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2013.

Language Note:

English

Summary:

This paper explores whether corporate tax bias toward debt finance differs between banks and nonbanks, using a large panel of micro data. On average, it finds that there is no significant difference. The marginal tax effect for both banks and non-banks is close to 0.2. However, the responsiveness differs considerably across the size distribution and the conditional leverage distribution. For nonbanks, we find a U-shaped relationship between asset size and tax responsiveness, although this pattern does not hold universally across the conditional leverage distribution. For banks, in contrast, the tax responsiveness declines linearly in asset size. Quantile regressions show further that capitaltight banks are significantly less responsive than are capital-abundant banks; the same pattern holds for the largest non-banks. Still, even the largest banks with high conditional leverage ratios feature a significant, positive tax response.

Contents:

Cover; Abstract; Contents; I. Introduction; II. Methodology; A. Specification and Estimation; B. Data; Tables; 1. Descriptive Statistics; Figures; 1. Size Distribution of Non-banks; III. Results; A. Non-banks; 2. Size Distribution of Banks; 2. Capital Structure Regressions for Non-banks; 3. Marginal Tax Effect on the Leverage Ratio along the Size Distribution of Non-banks; B. Banks; 3. Capital Structure Regressions for Banks; C. Banks and Non-Banks; 4. Marginal Tax Effect on the Leverage Ratio along the Size Distribution of Banks

4. Capital Structure Regressions for the Full Sample of Banks and Non-banks5. Testing Equivalence of Tax Effects for Non-banks and Banks Across; D. Quantile Regressions; 6. Tax Effects from Quantile Regression for Non-banks-Interaction of Tax and Second-order Polynomial of Size; 7. Tax Effects from Quantile Regression for Banks-Interaction of Tax and First-order Polynomial of Size; IV. Conclusions; Appendixes; I. Data by Country; Appendix Tables; A-1. Sample Composition by Countries; II. Regressions on the Full Sample of Non-banks and Bank

A-2. Capital Structure Regressions for the Full Sample of Banks and Non-banksIII. Quantile Regressions; A-3. Quantile Regression for Non-banks-Interaction of Tax and Second-order Polynomial of Size; A-4. Quantile Regression for Banks-Interaction of Tax and First-order Polynomial of Size; References

Notes:

Description based upon print version of record.

Includes bibliographical references.

Description based on online resource; title from PDF title page (ebrary, viewed January 6, 2014).

ISBN:

9781484314579

1484314573

9781484366790

1484366794

9781484344644

1484344642