Abstract

http://ssrn.com/abstract=1905216
 


 



Taxes, Financial Reporting Standards and the Role of Information Asymmetry in the Structuring of Cross-Border Mergers and Acquisitions


Devan Mescall


University of Saskatchewan

Christy MacDonald


affiliation not provided to SSRN

January 1, 2011

2011 American Accounting Association Annual Meeting - Tax Concurrent Sessions

Abstract:     
We study the effect of high quality financial standards and shareholder-level capital gains taxes on the structuring of cross-border mergers and acquisitions. Using 5,837 M&A transaction across a 16-year period, we find that higher shareholder capital gains tax rates lead to increased use of tax-free share-for-share exchanges. Consistent with theory, the role of shareholders’ tax incentives are mitigated by increased information asymmetry in cross-border transactions. However, we find evidence that higher quality financial reporting standards reduce this information asymmetry allowing more tax efficient cross-border transactions.

Number of Pages in PDF File: 26

working papers series


Download This Paper

Date posted: August 5, 2011 ; Last revised: August 26, 2011

Suggested Citation

Mescall, Devan and MacDonald , Christy, Taxes, Financial Reporting Standards and the Role of Information Asymmetry in the Structuring of Cross-Border Mergers and Acquisitions (January 1, 2011). 2011 American Accounting Association Annual Meeting - Tax Concurrent Sessions. Available at SSRN: http://ssrn.com/abstract=1905216 or http://dx.doi.org/10.2139/ssrn.1905216

Contact Information

Devan Mescall (Contact Author)
University of Saskatchewan ( email )
Edwards School of Business
Saskatoon, Saskatchewan S7N 5A7
Canada
Christy MacDonald
affiliation not provided to SSRN ( email )
Feedback to SSRN


Paper statistics
Abstract Views: 964
Downloads: 119
Download Rank: 138,134
People who downloaded this paper also downloaded:
1. Corporate Social Responsibility and Tax Aggressiveness
By Grant Richardson and Roman Lanis

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.906 seconds