Negative interest rates and corporate tax behavior in banks

Jahr: 2025

Typ: Journal Publication

Fachzeitschrift: Journal of Accounting and Public Policy

Using a sample of OECD domestic banks and a difference-in-difference research design, we examine the impact of Negative Interest Rate (NIR) regimes on corporate tax behavior. We document that the introduction of NIRs is associated with a 2.3 to 2.6 percentage point decrease in effective tax rates. The effect of NIRs is more pronounced in banks with lower distance to default, and in countries with lower tax enforcement or lower trust in the government. Collectively, our results suggest that the increased costs associated with NIRs are borne by commercial banks which lead to an increase in their respective tax planning.

Veröffentlichungsinformationen

TRR 266 researchers

Yuchen Wu Zhejiang University of Finance and Economics

External researchers

Alexander Edwards

Michael Marin

Volume Number

DOI

DOI Link

To cite this article

Edwards, A., Marin, M., & Wu, Y. (2025). Negative interest rates and corporate tax behavior in banks. Journal of Accounting and Public Policy, 53, https://doi.org/10.1016/j.jaccpubpol.2025.107337.

Zugehörige Projekte

B04

Real Effects of Transparency

+ 13

Beteiligte Institutionen

Die Hauptstandorte vom TRR 266 sind die Universität Paderborn (Sprecherhochschule), die HU Berlin und die Universität Mannheim. Alle drei Standorte sind seit vielen Jahren Zentren für Rechnungswesen- und Steuerforschung. Hinzu kommen Wissenschaftler der LMU München, der Frankfurt School of Finance and Management, der Goethe-Universität Frankfurt, der Universität zu Köln, der Leibniz Universität Hannover und der TU Darmstadt, die die gleiche Forschungsagenda verfolgen.