Universität zu Köln

Merz, Julia and Overesch, Michael ORCID: 0000-0002-1531-0357 (2016). Profit shifting and tax response of multinational banks. Journal of banking and finance, 68. 57 - 69. AMSTERDAM: ELSEVIER SCIENCE BV. ISSN 1872-6372

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Abstract

This paper analyzes multinational banks' response to taxation. For the empirical analysis we use firm level bank data from the Bankscope database. We find significant tax effects on reported profits of bank subsidiaries. The magnitude for the tax response of reported profits doubles the effects found in previous studies for non-financial MNCs. Additional analysis reveals that the response to tax incentives differs across business types. The tax elasticity of revenues generated by interest-bearing activities is less responsive compared to other activities. Results also reveal significant tax effects on loan loss provisions. (C) 2016 Elsevier B.V. All rights reserved.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Merz, Julia UNSPECIFIED UNSPECIFIED UNSPECIFIED Overesch, Michael UNSPECIFIED orcid.org/0000-0002-1531-0357 UNSPECIFIED
URN:	urn:nbn:de:hbz:38-271236
DOI:	10.1016/j.jbankfin.2016.03.015
Journal or Publication Title:	Journal of banking and finance
Volume:	68
Page Range:	57 - 69
Date:	2016
Publisher:	ELSEVIER SCIENCE BV
Place of Publication:	AMSTERDAM
ISSN:	1872-6372
Language:	English
Faculty:	Unspecified
Divisions:	Unspecified
Subjects:	Management and auxiliary services
Uncontrolled Keywords:	Keywords Language LOAN-LOSS PROVISIONS; CAPITAL STRUCTURE; INTERNATIONAL EVIDENCE; EARNINGS; DETERMINANTS; PERSPECTIVE; TAXATION; MARKET Multiple languages Business, Finance; Economics Multiple languages
Refereed:	Yes
URI:	http://kups.ub.uni-koeln.de/id/eprint/27123