This study investigates the effects of using additional tier 1 (AT1) capital instruments on bank profitability. It is motivated by the fact that the use of contingent convertible bonds (CoCo bonds) instead of equity offers a tax shield and incentives for efficient risk taking. I empirically analyze a panel dataset of 231 banks from EEA countries as well as Switzerland from 2014 to 2018. My analysis shows that the potential tax shield partly determines the use of CoCo bonds, and that the use of CoCo bonds instead of equity as AT1 capital significantly increases bank profitability.

中文翻译：

---

通过或有可转换资本提高盈利能力：欧洲银行的经验证据

这项研究调查了使用其他一级资本工具对银行盈利能力的影响。其动机是因为使用或有可转换债券（CoCo债券）而不是股票提供了税收抵免和有效冒险的激励措施。我对2014年至2018年来自欧洲经济区国家和瑞士的231家银行的面板数据进行了经验分析。我的分析表明，潜在的税盾部分决定了CoCo债券的使用，并且使用CoCo债券而不是股权作为AT1资本大大提高了银行的盈利能力。