This paper investigates the effect at the bank and industry level of a 1996 tax law change allowing commercial banks to elect S-corporation status. By the end of 2007, roughly one in three commercial banks had either opted for or converted to the S-corporation form of organization. Our study...

Project Merlin – the agreement between the UK Government and some major banks – has started the move towards the reform of important banking issues in the UK. One of the reasons for opting for a non-binding agreement instead of hard law is the assumption that the banks may perceive high...

This paper investigates the effect at the bank and industry level of a 1996 tax law change allowing commercial banks to elect S-corporation status. By the end of 2007, roughly one in three commercial banks had either opted for or converted to the S-corporation form of organization. Our study...

Following the establishment of the Single Supervisory Mechanism (SSM), concerns about having a level playing field become more important due to the heterogeneity in bank taxation rules across Europe: measuring the tax burden can provide a first rough measure of the extent of heterogeneity across...

The purpose of this paper, structured in three Sections, is twofold: (a) The first is to analyse the conditions under which a group of financial firms is considered to be a ‘financial conglomerate' in accordance with the (complex) definition of this term in Article 2 (point (14)) of the...

Using a regression discontinuity design, this study shows that strengthened bank control rights triggered by loan covenant violations lead to an increase in cash tax savings and a reduction in tax risk. This effect is driven largely by firms with more severe shareholder–debtholder conflicts....

Several countries have recently introduced national capital standards exceeding the internationally coordinated Basel III rules, thus suggesting a "race to the top" in capital standards. We study regulatory competition when banks are heterogeneous and give loans to firms that produce output in...

Several countries have recently introduced national capital standards exceeding the internationally coordinated Basel III rules, thus suggesting a 'race to the top' in capital standards. We study regulatory competition when banks are heterogeneous and give loans to firms that produce output in...

Several countries have recently introduced national capital standards exceeding the internationally coordinated Basel III rules, thus suggesting a ‘race to the top' in capital standards. We study regulatory competition when banks are heterogeneous and give loans to firms that produce output in...

We document that lenders react to domestic climate policy stringency by increasing cross-border lending. We use granular fixed effects to control for loan demand and an instrumental variable strategy to establish causality. Consistent with regulatory arbitrage, the positive effect decreases in...