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BANKS, DEBT AND RISK: ASSESSING THE SPILLOVERS OF CORPORATE TAXES.

We find evidence of tax‐driven strategic allocation of debt and asset risk across group entities of European banks. We evaluate the effects that establishing tax neutrality between debt and equity finance has on systemic risk, and show that the degree of coordination in implementing the hypothetical...

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Published in:Economic Inquiry Vol. 58; no. 2; pp. 1023 - 1045
Main Authors: Fatica, Serena, Heynderickx, Wouter, Pagano, Andrea
Format: Article
Published: Wiley-Blackwell Apr2020
Subjects:
Externalities
Corporate taxes
Bank loans
Tax reform
Online Access:View this record in EBSCOhost

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