The Australian Bank Levy: do shareholders pay?

Dimitris K. Chronopoulos; Anna L. Sobiech; John O. S. Wilson

doi:10.1016/j.frl.2018.06.010

The Australian Bank Levy: do shareholders pay?

Dimitris K. Chronopoulos, Anna L. Sobiech, John O. S. Wilson

Centre for Responsible Banking and Finance

Research output: Contribution to journal › Article › peer-review

Abstract

Since the global financial crisis, the tax treatment of banks has gained interest in academic and public policy arenas. In this paper, we investigate the stock price reaction of a small sample of commercial banks that were affected by the sudden introduction of a bank levy in Australia. The results of an event study analysis suggest that there is a significant decline in the returns of affected banks following the announcement of the bank levy. This suggests that the banks liable to pay the Australian bank levy lose a considerable percentage (5.2%) of their market capitalisation following its announcement.

Original language	English
Pages (from-to)	412-415
Number of pages	4
Journal	Finance Research Letters
Volume	28
Early online date	22 Jun 2018
DOIs	https://doi.org/10.1016/j.frl.2018.06.010
Publication status	Published - Mar 2019

Keywords

Bank levy
Taxes
Australian banks
Event Study

Access to Document

10.1016/j.frl.2018.06.010

Chronopoulos_2018_FRL_AustralianBankLevy_AAM
© 2018 Elsevier Inc. This work has been made available online in accordance with the publisher’s policies. This is the author created, accepted version manuscript following peer review and may differ slightly from the final published version. The final published version of this work is available at https://doi.org/10.1016/j.frl.2018.06.010
Accepted author manuscript, 753 KBLicence: CC BY-NC-ND

Cite this

@article{282949869cc449b59e742d1c3b411cc0,

title = "The Australian Bank Levy: do shareholders pay?",

abstract = "Since the global financial crisis, the tax treatment of banks has gained interest in academic and public policy arenas. In this paper, we investigate the stock price reaction of a small sample of commercial banks that were affected by the sudden introduction of a bank levy in Australia. The results of an event study analysis suggest that there is a significant decline in the returns of affected banks following the announcement of the bank levy. This suggests that the banks liable to pay the Australian bank levy lose a considerable percentage (5.2%) of their market capitalisation following its announcement.",

keywords = "Bank levy, Taxes, Australian banks, Event Study",

author = "Chronopoulos, {Dimitris K.} and Sobiech, {Anna L.} and Wilson, {John O. S.}",

year = "2019",

month = mar,

doi = "10.1016/j.frl.2018.06.010",

language = "English",

volume = "28",

pages = "412--415",

journal = "Finance Research Letters",

issn = "1544-6123",

publisher = "Elsevier",

}

TY - JOUR

T1 - The Australian Bank Levy

T2 - do shareholders pay?

AU - Chronopoulos, Dimitris K.

AU - Sobiech, Anna L.

AU - Wilson, John O. S.

PY - 2019/3

Y1 - 2019/3

N2 - Since the global financial crisis, the tax treatment of banks has gained interest in academic and public policy arenas. In this paper, we investigate the stock price reaction of a small sample of commercial banks that were affected by the sudden introduction of a bank levy in Australia. The results of an event study analysis suggest that there is a significant decline in the returns of affected banks following the announcement of the bank levy. This suggests that the banks liable to pay the Australian bank levy lose a considerable percentage (5.2%) of their market capitalisation following its announcement.

AB - Since the global financial crisis, the tax treatment of banks has gained interest in academic and public policy arenas. In this paper, we investigate the stock price reaction of a small sample of commercial banks that were affected by the sudden introduction of a bank levy in Australia. The results of an event study analysis suggest that there is a significant decline in the returns of affected banks following the announcement of the bank levy. This suggests that the banks liable to pay the Australian bank levy lose a considerable percentage (5.2%) of their market capitalisation following its announcement.

KW - Bank levy

KW - Taxes

KW - Australian banks

KW - Event Study

U2 - 10.1016/j.frl.2018.06.010

DO - 10.1016/j.frl.2018.06.010

M3 - Article

SN - 1544-6123

VL - 28

SP - 412

EP - 415

JO - Finance Research Letters

JF - Finance Research Letters

ER -

The Australian Bank Levy: do shareholders pay?

Abstract

Keywords

Access to Document

Fingerprint

Cite this