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https://hdl.handle.net/10419/60963
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DC Field | Value | Language |
---|---|---|
dc.contributor.author | Mehran, Hamid | en |
dc.contributor.author | Suher, Michael | en |
dc.date.accessioned | 2010-05-05 | - |
dc.date.accessioned | 2012-08-17T14:38:39Z | - |
dc.date.available | 2012-08-17T14:38:39Z | - |
dc.date.issued | 2009 | - |
dc.identifier.uri | http://hdl.handle.net/10419/60963 | - |
dc.description.abstract | 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 analyzes the effect of this conversion on bank dividend payouts. It also examines the effect S-corporation status has on a community bank's likelihood of sell-off and measures a firm's sensitivity to tax rates based on its choice of organizational form. We document that dividend payouts increase substantially after a bank's conversion to S status. Moreover, community banks that convert are significantly less likely to be sold than their C-corporation peers. We estimate a tax rate elasticity of conversion in the range of 2 to 3 percent for every 1-percentage-point change in relative tax rates. Overall, our results provide evidence that Subchapter S status has significant effects on bank conduct and industry structure. | en |
dc.language.iso | eng | en |
dc.publisher | |aFederal Reserve Bank of New York |cNew York, NY | en |
dc.relation.ispartofseries | |aStaff Report |x369 | en |
dc.subject.jel | A12 | en |
dc.subject.jel | K34 | en |
dc.subject.jel | H25 | en |
dc.subject.jel | G20 | en |
dc.subject.ddc | 330 | en |
dc.subject.keyword | Tax law | en |
dc.subject.keyword | S corporations | en |
dc.subject.keyword | organizational form | en |
dc.subject.keyword | dividend policy | en |
dc.subject.keyword | sell-offs | en |
dc.subject.keyword | industry structure | en |
dc.title | The impact of tax law changes on bank dividend policy, sell-offs, organizational form, and industry structure | - |
dc.type | Working Paper | en |
dc.identifier.ppn | 606261923 | en |
dc.rights | http://www.econstor.eu/dspace/Nutzungsbedingungen | en |
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