Bank taxes in Europe and the impact on bank stock market valuations, dividend expectations and CDS spreads
The results of this study suggest that European publicly listed banks were not much affected by new tax introductions in the 2022-2024 period. Although there was an average negative reaction on the stock market, no clear reaction appears in either dividend expectations or CDS spreads. This indicates that there was no increased expected risk of failure to uphold sufficient capital positions. The stock market reaction can thus be attributed to general market uncertainty.