Note(s): This table reports the regression discontinuity coefficients for the baseline results. The table reports both the local linear and quadratic regression discontinuity coefficients first by specifying a sub-sample of “All Relevant Banks,” which includes banks between $10B and $200B in total asset size, and second, by using the MSE optimal bandwidth measure. The table reports the results for the tax avoidance measure (Cash ETR) in Panel A, the TAI (composite measure by equally weighting the cash tax aggressiveness and the GAAP Tax aggressiveness) in Panel B. Regressions are triangular kernel weighted and are allowed to capture more banks in a larger bandwidth in the first two columns and are restricted to having at least 65 observations within the selected optimal bandwidth in the last two columns. Control variables include the first 12 bank characteristics shown in Table 2. All regressions include bank and year-fixed effects. Standard errors are clustered at the bank level and are reported in parentheses while observation counts are reported in brackets. ***, ** and * indicate significance at the 1%, 5% and 10% levels, respectively

Source(s): Authors’ own work