Real Effects of International Tax Planning: Evidence from Domestic Acquisitions
We examine whether and how the tax haven subsidiary profiles of U.S. acquirers and targets affect M&A pairing. Using disclosed material subsidiary data, we develop two measures of tax haven subsidiary relatedness between the acquirer and its target. Examining the associations of these measures w...
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sg-smu-ink.soa_research-24392018-07-13T06:44:36Z Real Effects of International Tax Planning: Evidence from Domestic Acquisitions CHOW, Travis KLASSEN, Kenneth We examine whether and how the tax haven subsidiary profiles of U.S. acquirers and targets affect M&A pairing. Using disclosed material subsidiary data, we develop two measures of tax haven subsidiary relatedness between the acquirer and its target. Examining the associations of these measures with the probability of merger pair formation, the results suggest that acquirers are more likely to select targets whose subsidiaries are located in tax havens similar to their own, consistent with economies of scale in tax planning. This relation suggests that firms’ past tax planning decisions have significant effects on their future real corporate decisions. 2014-12-01T08:00:00Z text application/pdf https://ink.library.smu.edu.sg/soa_research/1440 http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Accountancy eng Institutional Knowledge at Singapore Management University Tax Planning Tax Havens Mergers and Acquisitions Accounting Taxation |
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Tax Planning Tax Havens Mergers and Acquisitions Accounting Taxation CHOW, Travis KLASSEN, Kenneth Real Effects of International Tax Planning: Evidence from Domestic Acquisitions |
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We examine whether and how the tax haven subsidiary profiles of U.S. acquirers and targets affect M&A pairing. Using disclosed material subsidiary data, we develop two measures of tax haven subsidiary relatedness between the acquirer and its target. Examining the associations of these measures with the probability of merger pair formation, the results suggest that acquirers are more likely to select targets whose subsidiaries are located in tax havens similar to their own, consistent with economies of scale in tax planning. This relation suggests that firms’ past tax planning decisions have significant effects on their future real corporate decisions. |
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text |
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CHOW, Travis KLASSEN, Kenneth |
author_facet |
CHOW, Travis KLASSEN, Kenneth |
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CHOW, Travis |
title |
Real Effects of International Tax Planning: Evidence from Domestic Acquisitions |
title_short |
Real Effects of International Tax Planning: Evidence from Domestic Acquisitions |
title_full |
Real Effects of International Tax Planning: Evidence from Domestic Acquisitions |
title_fullStr |
Real Effects of International Tax Planning: Evidence from Domestic Acquisitions |
title_full_unstemmed |
Real Effects of International Tax Planning: Evidence from Domestic Acquisitions |
title_sort |
real effects of international tax planning: evidence from domestic acquisitions |
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Institutional Knowledge at Singapore Management University |
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2014 |
url |
https://ink.library.smu.edu.sg/soa_research/1440 |
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1770572442348027904 |