Work

Legal forms and regulatory responses: a comparative analysis of S and C corporation community banks

Year: 2025

Type: article

Abstract: This study investigates the differential responses of Subchapter S and C corporation banks within the U.S. community banking sector to significant policy changes following the 2007–2008 financial crisis. Using bank-level data from 2003 to 2019 and employing a difference-in-differences analysis, we explore how legal forms influence banks’ yields on earning assets and funding costs. Our findings reveal that S banks, due to their unique tax status and capital access limitations, exhibited more pronounced reductions in asset yields and increased funding costs compared to C banks.

Source: Economics of Governance

DOI: 10.1007/s10101-025-00339-x

Authors: Shi Qi, Sepideh Raei

Institutions: William & Mary, Utah State University

Language: English

Topic: Banking stability, regulation, efficiency

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $3,190

OpenAlex ID: W4413858851