Empirical Evidence for the Effect of Taxation on National and International Mergers & Acquisitions
Empirical Evidence for the Effect of Taxation on National and International Mergers & Acquisitions
Large parts of corporate investment consist of corporate takeovers. The aim of the research proposal is to analyze empirically in how far taxes influence such takeovers. The project’s first research question is whether there is empirical evidence for higher prices as a result of corporate capital gains taxes. Furthermore, the theory based tax planning strategies related to mergers & acquisitions are supposed to be checked for empirical relevance. The third aspect of the project is twofold. On the one hand, it is to be examined whether there is evidence for capital gains taxation reducing the number of corporate takeovers or whether the tax deductibility of funding costs in high-tax countries exceptionally promotes acquisitions in low tax countries. On the other hand, the question whether investors from tax credit countries suffer from a systematic disadvantage for corporate takeovers in low-tax countries is relevant, too.