Anticipated tax planning as a source of merger gains

• Main Authors: CHOW, Travis, KLASSEN, Kenneth, LIU, Yanju
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2014
• Subjects: Tax Aggressiveness; Mergers and Acquisitions; Accounting; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/soa_research/1634
• Institution: Singapore Management University

This paper investigates anticipated tax planning as an underlying source of value creation for acquirers’ shareholders. We hypothesize that merger announcement returns for acquirers reflect their shareholders’ beliefs about the future tax planning performance of the merged firm. Our analyses show th...