Note(s): This table reports the regression discontinuity coefficients for the falsification tests. The table reports the Localized Effects for both the local linear and quadratic regression discontinuity coefficients using the MSE optimal bandwidth measure. The table reports the results of the threshold falsification tests (10% below and 10% above the natural logarithm of the bank-size policy thresholds) for the annual Cash Effective Tax Rate in Panel A and the TAI in Panel B. Regressions are triangular kernel weighted and are restricted to having at least 50 observations within the selected optimal bandwidth. 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