The Value of a Loss: The Impact of Restricting Tax Loss Transfers

• 成果类型: Article; Early Access
• 署名作者: Buhrle, Theresa; Casi, Elisa; Stage, Barbara; Voget, Johannes
• 署名单位: Norwegian School of Economics (NHH); WHU - Otto Beisheim School of Management; University of Mannheim
• 刊物名称: JOURNAL OF ACCOUNTING RESEARCH
• ISSN/ISSBN: 0021-8456; 1475-679X
• DOI: 10.1111/1475-679x.70070
• 发表日期: 2026-05-05
• 关键词: Mergers and acquisitions; anti-loss trafficking rules; taxes; market exit; industry productivity; INNOVATION; international taxation; financial constraints; acquisition premiums; corporate-taxes; mergers; gains; determinants; INVESTMENT; management; wages

摘要

We study the economic consequences of anti-loss trafficking rules, which disallow the use of loss carryforwards as a tax shield after a substantial ownership change. We use staggered changes to these rules in the EU27 Member States, Norway, and the United Kingdom from 1998 to 2019 and find that limiting the transfer of tax losses is related to the number of mergers and acquisitions (M&A) declining by 18%, driven by loss-making targets. Turning to broader industry dynamics, we find decreases in survival rates of young companies after tighter regulations. Loosening of regulation is associated with increased firm survival. Tightening (loosening) anti-loss trafficking rules is related to decreased (increased) industry productivity, especially in R&D-intensive industries that are more prone to loss-making. Finally, tighter anti-loss trafficking rules are associated with lower deal synergies and risk-taking. All effects concentrate in strict regimes.