East Germany Rearguard Only investments in education will lead to a further catch-up ...
Financial Stability Dossier ...
Does Social Capital Matter in Corporate Decisions? Evidence from Corporate Tax Avoidance ...
Fiscal Policy and Fiscal Fragility: Empirical Evidence from the OECD ...
Brown Bag Seminar
Brown Bag Seminar Financial Markets Department The seminar series "Brown...
Joint Economic Forecast
Joint Economic Forecast The joint economic forecast is an instrument for evaluating...
Gross domestic product
Gross domestic product Gross domestic product (GDP) includes the value of all goods and services produced in an economic area during a specific period of time. It is ...
Income and savings
Income and savings Primary income of the private households The primary income of the private households (including private non-profit organisations) includes the income...
Branches of economy
Branches of economy Gross domestic product, gross value added Gross domestic product (GDP) includes the value of all goods and services produced in an economic area...
Interactions Between Regulatory and Corporate Taxes: How Is Bank Leverage Affected?
IWH Discussion Papers,
Regulatory bank levies set incentives for banks to reduce leverage. At the same time, corporate income taxation makes funding through debt more attractive. In this paper, we explore how regulatory levies affect bank capital structure, depending on corporate income taxation. Based on bank balance sheet data from 2006 to 2014 for a panel of EU-banks, our analysis yields three main results: The introduction of bank levies leads to lower leverage as liabilities become more expensive. This effect is weaker the more elevated corporate income taxes are. In countries charging very high corporate income taxes, the incentives of bank levies to reduce leverage turn ineffective. Thus, bank levies can counteract the debt bias of taxation only partially.