Date of Graduation
8-2018
Document Type
Dissertation
Degree Name
Doctor of Philosophy in Business Administration (PhD)
Degree Level
Graduate
Department
Accounting
Advisor
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