Who bears the burden of international taxation? Evidence from cross-border M&As

• 成果类型: Article
• 署名作者: Huizinga, Harry; Voget, Johannes; Wagner, Wolf
• 署名单位: Tilburg University; Centre for Economic Policy Research - UK; University of Mannheim
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2012.02.013
• 发表日期: 2012
• 页码: 186-197
• 关键词: International taxation; Takeover premium; Cross-border M&As

摘要

Cross-border M&As can trigger additional taxation of the target's income in the form of non-resident dividend withholding taxes and acquirer-country corporate income taxation. This paper finds that this additional international taxation is fully capitalized into lower takeover premiums. In contrast, acquirer excess stock market returns around the bid announcement date do not appear to reflect additional taxation of the target's income. These findings suggest that international taxation is considered to be burdensome and that the incidence of this taxation is primarily on target-firm shareholders. (c) 2012 Elsevier B.V. All rights reserved.