Does taxation on banks mean taxation on bank-dependent borrowers?

Economics Bulletin, 2012, vol. 32, issue 4, 3439-3448

Abstract: We investigate the economic impacts of bank levies on bank-dependent borrowers, exploiting the surprise announcement of a bank tax by the Tokyo metropolitan government on February 7th, 2000. We find that the tax announcement had negative effects on the abnormal return of firms which depended on soon-to-be taxed banks for external funds. Moreover, the adverse economic effects of the bank tax were larger for smaller and more financially distressed firms, suggesting that bank levies are likely to be passed onto bank-dependent firms with limited access to non-bank finance.

JEL-codes: G2 (search for similar items in EconPapers)
Date: 2012-12-20
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I4-P331.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-12-00750

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().