Date of Graduation
8-2018
Document Type
Dissertation
Degree Name
Doctor of Philosophy in Business Administration (PhD)
Degree Level
Graduate
Department
Accounting
Advisor/Mentor
T.J. Atwood
Committee Member
Cory Cassell
Second Committee Member
Jonathan Shipman
Keywords
International Taxation, Mergers and Acquisitions
Abstract
Although determinants of cross-border merger and acquisitions (M&As) have been given substantial attention in the literature, research examining the effect of tax system characteristics on cross-border M&As is more limited. Cross-border M&As have substantial tax implications for both the acquiring firm and the target firm. Because firms evaluate investments based on expected after-tax returns, I expect that managers consider potential tax savings or costs in making investment decisions across tax jurisdictions. In this study, I use hand-collected country-year-level tax system characteristics to examine tax determinants of the volume and direction of cross-border M&As. I find that tax system characteristics such as controlled foreign corporation provisions, thin capitalization provisions, and the presence of a worldwide versus territorial regime have a significant effect on cross-border M&A activity.
Citation
Henley, J. M. (2018). The Effect of Tax System Characteristics on Cross-Border Mergers and Acquisitions. Graduate Theses and Dissertations Retrieved from https://scholarworks.uark.edu/etd/2834