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Do U.S. Firms Disguise Acquisitions to Avoid Taxes?

Harris, Jeremiah - 2020

Our study finds evidence consistent with U.S. multinational firms disguising domestic acquisitions as corporate reorganizations to avoid repatriation-related taxes. Prior to a 2017 tax reform, we find that a combination of high potential repatriation costs and large overseas earnings balances is...

Persistent link: https://www.econbiz.de/10012856195

Income Tax Buyouts and Income Tax Evasion

Goerke, Laszlo - 2014

A tax buyout is a contract between tax authorities and a tax payer which reduces the marginal income tax rate in exchange for a lump-sum payment. While previous contributions have focussed on labour supply, we consider the interaction with tax evasion and show that a buyout can increase expected...

Persistent link: https://www.econbiz.de/10013058508

International Taxation and M&A Prices

von Hagen, Dominik - 2018

We show that corporate taxation systems regarding foreign dividends and capital gains across 49 countries differ in many aspects, contradicting the requirements for capital ownership neutrality and indicating that ownership patterns are distorted. Consequently, a national tax policy maker may...

Persistent link: https://www.econbiz.de/10012932367

U.S. Worldwide Taxation and Domestic Mergers and Acquisitions

Harris, Jeremiah - 2018

This study shows that domestic mergers and acquisitions (M&A) were inhibited by the U.S.'s worldwide tax policy on foreign-earned income. Double Irish structures, a complex web of subsidiaries that reduce foreign tax rates and therefore increase potential repatriation tax rates, are associated...

Persistent link: https://www.econbiz.de/10012934507

How does the Market for Corporate Control Impact Tax Avoidance? Evidence from International M&A Laws

Hu, Jinshuai; Li, Siqi; Shevlin, Terry J. - 2021

corporate tax planning. Exploiting the staggered enactment of M&A laws across countries that increased the threat of takeover as … avoidance following the takeover law passage. Our analysis suggests that reduced management private benefits consumption (i … strategies, is the likely mechanism through which takeover laws impact tax avoidance. Collectively, our findings extend the …

Persistent link: https://www.econbiz.de/10013220207

Are Potential Tax Benefits Priced in Mergers and Acquisitions?

Yorke, Sally; Mo, Phyllis Lai Lan - 2021

Prior studies suggest that private firms pay less for acquisitions compared to public firms. In this study, we examine whether there are differences in the tax characteristics of target firms acquired by public and private bidders and whether such differences can explain variations in the...

Persistent link: https://www.econbiz.de/10013221495

Tax Avoidance through Cross-Border Mergers and Acquisitions

Meier, Jean-Marie; Smith, Jake - 2021

While tax havens are known as custodians and intermediaries of assets, this is the first paper to document that havens affect the ownership of assets on a large scale. We investigate cross-border, tax-haven mergers and acquisitions (M&A) using hand-collected data on tax residence laws and a...

Persistent link: https://www.econbiz.de/10013234797

Impact of controlled foreign corporation rules on post-acquisition investment and profit shifting in targets

Hagen, Dominik von; Harendt, Christoph - 2017

We investigate real investment, financial revenues and profits in formerly domestic firms once they enter a multinational entity (MNE) through an acquisition. We argue that following the acquisition, those targets are tax-optimized in a profit shifting context if they are acquired by MNEs with...

Persistent link: https://www.econbiz.de/10011756005

Tax influence on financial structures of M&As

Harendt, Christoph - 2018

In this paper, I investigate the influence of tax incentives on the financial structures of mergers and acquisitions (M&A) conducted by multinational entities (MNE). Previous research has already found evidence for tax avoidance by debt shifting. I analyze the importance of locating debt at...

Persistent link: https://www.econbiz.de/10011782963

Taxes and Takeovers : Evidence from Private Negotiations During Tax Reform

Edwards, Alexander; Heitzman, Shane; Klasa, Sandy; … - 2022

’s expected gains from the reform and driven by targets with more bargaining power. Our results provide new insight on takeover …

Persistent link: https://www.econbiz.de/10013405692