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Tax Competition : Greenfield Investment Versus Mergers and Acquisitions

Becker, Johannes; Fuest, Clemens - 2021

In this paper, we analyze tax competition in a model where investor firms have the choice between two types of investment, greenfield investment and mergers and acquisitions. We show that the coexistence of these two types of investment intensifies tax competition in comparison to the case where...

Persistent link: https://www.econbiz.de/10013316566

Asset Basis in Acquisitive Reorganizations : General Utilities Hangover

Hasen, David - 2018

The rules that govern the tax basis and, by extension, the holding period of property received by an acquired corporation in an acquisitive reorganization are an unlovely patchwork that emerged from major changes to the tax law in 1986 and 1988. They not only fail to provide clarity but also do...

Persistent link: https://www.econbiz.de/10012913518

Buying to sell : a theory of buyouts

Norbäck, Pehr-Johan; Persson, Lars; Tåg, Joacim - 2010

comparable firms. We develop a theory of buyouts in oligopolistic markets that explains these facts. Private equity firms are …

Persistent link: https://www.econbiz.de/10003914407

Entrepreneurial human capital, complementary assets, and takeover probability

Braun, Thorsten V.; Krispin, Sebastian; Lehmann, Erik - 2009

mergers and acquisitions. In this paper we show that a knowledge-based firm's probability of being a takeover target is … firm's assets in the spirit of the Grossman-Hart-Moore incomplete contracts theory of the firm. This approach highlights … manager owner significantly decreases that firm's probability of being a takeover target. -- ownership structure ; property …

Persistent link: https://www.econbiz.de/10003931309

Cross-border mergers and hollowing-out

Secrieru, Oana - 2009

The purpose of our paper is to examine the profitability and social desirability of both domestic and foreign mergers in a location-quantity competition model, where we allow for the possibility of hollowing-out of the target firm. We refer to hollowing-out as the situation where the target firm...

Persistent link: https://www.econbiz.de/10003933343

Mergers and acquisitions - the standing of theory in the quest for better institutions and policy

Jensen, Camilla - 2010

The paper shows that the standing of theory in the field of mergers and acquisitions is weak for at least three reasons …. Research is best described as a battlefield of ad hoc theory testing leaving behind a fragmented field. Research has focused … growth). The deficiencies in the standing of theory will be reflected in weak institutions to handle the political processes …

Persistent link: https://www.econbiz.de/10003973902

Bank capital and value in the cross section

Mehran, Hamid; Thakor, Anjan V. - 2009

We address two questions: (i) Are bank capital structure and value correlated in the cross section, and if so, how? (ii) If bank capital does affect bank value, how are the components of bank value affected by capital? We first develop a dynamic model with a dissipative cost of bank capital that...

Persistent link: https://www.econbiz.de/10003947552

Consistent valuation of project finance and LBO's using the flows-to-equity method

Cooper, Ian; Nyborg, Kjell G. - 2010

A common method of valuing the equity in highly leveraged transactions is the flows-to-equity method. When applying this method various formulas can be used to calculate the time-varying cost of equity. In this paper we show that some commonly used formulas are inconsistent with the assumptions...

Persistent link: https://www.econbiz.de/10008797682

Horizontal mergers with synergies: first-price vs. profit-share auction

Ding, Wei; Fan, Cuihong; Wolfstetter, Elmar - 2010

We consider takeover bidding in a Cournot oligopoly when firms have private information concerning the synergy effect … of merging with a takeover target. Two auction rules are considered: standard first-price and profit-share auctions …

Persistent link: https://www.econbiz.de/10008822617

Merger negotiations with stock market feedback

Betton, Sandra; Eckbo, B. Espen; Thompson, Rex; … - 2011 - Rev.

Do pre-offer target stock price runups increase bidder takeover costs? We present model-based tests of this issue … assuming runups are caused by signals that inform investors about potential takeover synergies. Rational deal anticipation …

Persistent link: https://www.econbiz.de/10009241644