Tax avoidance through securitization

article Tax avoidance through securitization André Uhde author 36049https://orcid.org/0000-0002-8058-8857 186 department 188 department Employing a unique hand-collected sample of 956 credit risk securitization transactions issued by 64 stock-listed European banks across the EU-13 plus Switzerland over the period from 1997 to 2010, this paper empirically analyzes the impact of securitization on the issuing banks’ effective tax rates. Our analysis reveals that banks may reduce their tax expense through securitization via a direct and indirect channel suggesting that tax avoidance may be a further motive for banks to engage in the securitization business. These baseline findings remain robust under various robustness checks, especially when implementing structural equation models and controlling for a reverse causality between the banks’ tax burden and their incentive to securitize. Finally, various sensitivity analyses provide further important results and implications for tax policies, banking regulation and the ongoing process of revitalizing the European securitization market. 2021 eng SecuritizationCredit risk transferEffective tax ratesEuropean banking The Quarterly Review of Economics and Finance10.1016/j.qref.2020.07.008 79411-421 A. Uhde, The Quarterly Review of Economics and Finance 79 (2021) 411–421. Uhde, André. “Tax Avoidance through Securitization.” The Quarterly Review of Economics and Finance, vol. 79, 2021, pp. 411–21, doi:<a href="https://doi.org/10.1016/j.qref.2020.07.008">10.1016/j.qref.2020.07.008</a>. @article{Uhde_2021, title={Tax avoidance through securitization}, volume={79}, DOI={<a href="https://doi.org/10.1016/j.qref.2020.07.008">10.1016/j.qref.2020.07.008</a>}, journal={The Quarterly Review of Economics and Finance}, author={Uhde, André}, year={2021}, pages={411–421} } Uhde, A. (2021). Tax avoidance through securitization. The Quarterly Review of Economics and Finance, 79, 411–421. <a href="https://doi.org/10.1016/j.qref.2020.07.008">https://doi.org/10.1016/j.qref.2020.07.008</a> A. Uhde, “Tax avoidance through securitization,” The Quarterly Review of Economics and Finance, vol. 79, pp. 411–421, 2021. Uhde, André. “Tax Avoidance through Securitization.” The Quarterly Review of Economics and Finance 79 (2021): 411–21. <a href="https://doi.org/10.1016/j.qref.2020.07.008">https://doi.org/10.1016/j.qref.2020.07.008</a>. Uhde A. Tax avoidance through securitization. The Quarterly Review of Economics and Finance. 2021;79:411-421. doi:<a href="https://doi.org/10.1016/j.qref.2020.07.008">10.1016/j.qref.2020.07.008</a> 51632018-10-31T09:55:40Z2022-01-06T07:01:40Z