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dc.contributor.authorSobiech, Anna Lucia
dc.contributor.authorChronopoulos, Dimitris
dc.contributor.authorWilson, John Ogilvie Stephen
dc.identifier.citationSobiech , A L , Chronopoulos , D & Wilson , J O S 2021 , ' The real effects of bank taxation : evidence for corporate financing and investment ' , Journal of Corporate Finance , vol. In press , 101989 .
dc.identifier.otherPURE: 274530320
dc.identifier.otherPURE UUID: 52eadc31-2ea3-4f97-a0ee-5876663f1701
dc.identifier.otherORCID: /0000-0002-9554-9332/work/95772354
dc.identifier.otherORCID: /0000-0002-2288-4842/work/95772492
dc.identifier.otherScopus: 85109045469
dc.identifier.otherWOS: 000693225000043
dc.description.abstractThis paper examines how bank taxation affects the financing decisions and investment activities of corporates. Exploiting exogenous tax variation at the bank level, we show that taxing banks’ gross profits leads to higher bank leverage, and results in lower bank risk and credit supply. The contraction in credit supply has implications for corporate debt financing and investment activity. Corporates more exposed to banks subject to gross profit tax exhibit lower leverage and rely less on bank debt. Corporates partly offset lower bank financing by switching to bond financing. The cost of bond financing increases with corporate exposure to the tax. A greater exposure also impacts negatively on corporate investment activity. Overall, our results highlight the importance of bank taxation for corporate financing and investment decisions.
dc.relation.ispartofJournal of Corporate Financeen
dc.rightsCopyright © 2021 Elsevier B.V. All rights reserved. This work has been made available online in accordance with publisher policies or with permission. Permission for further reuse of this content should be sought from the publisher or the rights holder. This is the author created accepted manuscript following peer review and may differ slightly from the final published version. The final published version of this work is available at
dc.subjectBank taxationen
dc.subjectCredit supplyen
dc.subjectJapanese banksen
dc.subjectNatural experimenten
dc.subjectCorporate financingen
dc.subjectHG Financeen
dc.titleThe real effects of bank taxation : evidence for corporate financing and investmenten
dc.typeJournal articleen
dc.contributor.institutionUniversity of St Andrews. School of Managementen
dc.contributor.institutionUniversity of St Andrews. Centre for Responsible Banking and Financeen
dc.description.statusPeer revieweden

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