Is bank capital sensitive to a tax allowance on marginal equity?
研究了意大利对银行增发权益的税收补贴实施和取消后，银行资本比率的变化，发现实施后资本比率上升8.83%，取消后下降，且大银行和小银行反应不同。
Abstract This paper studies how bank capital changes following the implementation and removal of a tax incentive on equity. We examine the impact of the introduction of a tax allowance in Italy granted to banks (and other firms) that increase their equity from a base year. Using a difference‐in‐differences setting, we observe an 8.83% increase in bank capital ratios following the implementation of this reform. When this tax mechanism is phased out, we observe an opposite effect on the equity ratio, showing the absence of a hysteresis effect in bank capital. We document a heterogeneous effect for large and small banks.