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


Huizinga, Harry ; Voget, Johannes ; Wagner, Wolf



DOI: https://doi.org/10.1016/j.jinteco.2012.02.013
URL: http://www.sciencedirect.com/science/article/pii/S...
Document Type: Article
Year of publication: 2012
The title of a journal, publication series: Journal of International Economics
Volume: 88
Issue number: 1
Page range: 186-197
Place of publication: Amsterdam
Publishing house: Elsevier
ISSN: 0022-1996
Publication language: English
Institution: Business School > ABWL insbes. Finance & Accounting (Voget)
Subject: 330 Economics
Abstract: 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.

Dieser Eintrag ist Teil der Universitätsbibliographie.




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Huizinga, Harry ; Voget, Johannes ; Wagner, Wolf (2012) Who bears the burden of international taxation? Evidence from cross-border M&As. Journal of International Economics Amsterdam 88 1 186-197 [Article]


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