Financial Flexibility and the Cost of External Finance for U.S. Bank Holding Companies

2004 ◽  
Vol 36 (5) ◽  
pp. 827-852 ◽  
Author(s):  
Matthew T. Billett ◽  
Jon A. Garfinkel
Keyword(s):  
Bank Holding Companies ◽  
Financial Flexibility ◽  
Holding Companies ◽  
External Finance ◽  
The Cost

Strategic Cost Shifting and State Tax Minimization

2017 ◽  
Vol 30 (1) ◽  
pp. 55-72
Author(s):  
Curtis M. Hall ◽  
Stephen J. Lusch
Keyword(s):  
Cost Allocation ◽  
Unique Contribution ◽  
Bank Holding Companies ◽  
Cost Shifting ◽  
Holding Companies ◽  
Tax Reduction ◽  
Tax Management ◽  
State Tax ◽  
Alternative Type ◽  
The Cost

ABSTRACT In this study, we predict and find that multistate bank holding companies strategically allocate costs among their subsidiary banks to minimize tax. In particular, we find that high tax subsidiary banks report higher costs than low tax subsidiary banks within the same bank holding company. Additional tests provide evidence of cost shifting rather than operational differences among states. In particular, we find that high tax subsidiary banks of multistate bank holding companies report higher costs than single-state banks in the same high tax state. Our study provides a unique contribution to the cost allocation and tax management literature by directly linking tax reduction incentives to cost allocation and documenting an alternative type of state tax-minimization strategy in the banking industry. JEL Classifications: M41; H25; H71; G21.

Diversification and the cost of debt of bank holding companies

2007 ◽  
Vol 31 (8) ◽  
pp. 2453-2473 ◽  
Author(s):  
Saiying (Esther) Deng ◽  
Elyas Elyasiani ◽  
Connie X. Mao
Keyword(s):  
Cost Of Debt ◽  
Bank Holding Companies ◽  
Holding Companies ◽  
The Cost
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