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Bank Fundamentals, Executive Compensation and Public Perception of Banks in Australia
journal contribution
posted on 2014-09-01, 00:00 authored by Ameeta JainAmeeta Jain, John GuoJohn Guo, Chien-Ting LinPublic perception of banks in Australia is relatively poor compared to firms in other major services sectors. This study explores a number of potential sources of negative public opinion. We find that bank profits are similar to firms in other sectors after adjustment for firm size. Average bank executive remuneration as a proportion of total staff costs are also lower than those in other sectors. Finally, Australian banks not only pay a higher average effective tax rate than their counterparts in OECD countries but are also closest to their statutory corporate tax rates. Our findings therefore suggest that poor public perception of banks is based on the flawed claims of generating excessive profits, overpaying bank executives, and underpaying taxes and is not justified.
History
Journal
Economic PapersVolume
33Issue
3Pagination
220 - 232Publisher DOI
ISSN
0812-0439eISSN
1759-3441Publication classification
C Journal article; C1 Refereed article in a scholarly journalCopyright notice
2014, WileyUsage metrics
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