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Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/60963
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Full metadata record
| DC Field | | Value | | Language |
| dc.contributor.author | | Mehran, Hamid | | en_US |
| dc.contributor.author | | Suher, Michael | | en_US |
| dc.date.accessioned | | 2010-05-05 | | en_US |
| dc.date.accessioned | | 2012-08-17T14:38:39Z | | - |
| dc.date.available | | 2012-08-17T14:38:39Z | | - |
| dc.date.issued | | 2009 | | en_US |
| 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_US |
| dc.language.iso | | eng | | en_US |
| dc.publisher | | Federal Reserve Bank of New York New York, NY | | en_US |
| dc.relation.ispartofseries | | Staff Report, Federal Reserve Bank of New York 369 | | en_US |
| dc.subject.jel | | A12 | | en_US |
| dc.subject.jel | | K34 | | en_US |
| dc.subject.jel | | H25 | | en_US |
| dc.subject.jel | | G20 | | en_US |
| dc.subject.ddc | | 330 | | en_US |
| dc.subject.keyword | | Tax law | | en_US |
| dc.subject.keyword | | S corporations | | en_US |
| dc.subject.keyword | | organizational form | | en_US |
| dc.subject.keyword | | dividend policy | | en_US |
| dc.subject.keyword | | sell-offs | | en_US |
| dc.subject.keyword | | industry structure | | en_US |
| dc.title | | The impact of tax law changes on bank dividend policy, sell-offs, organizational form, and industry structure | | en_US |
| dc.type | | Working Paper | | en_US |
| dc.identifier.ppn | | 606261923 | | en_US |
| dc.rights | | http://www.econstor.eu/dspace/Nutzungsbedingungen | | en_US |
| Appears in Collections: | | Staff Reports, Federal Reserve Bank of New York
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