Income tax's rate and M&A transactions

@article{Fu2016IncomeTR,
  title={Income tax's rate and M&A transactions},
  author={Xiangfei Fu and Yongmei Cui and Lei Du},
  journal={2016 International Conference on Logistics, Informatics and Service Sciences (LISS)},
  year={2016},
  pages={1-4}
}
Based on the listed company Enterprise merger and acquisition (M&A) cases of China in 1994~2014, this paper examines the Income tax's influence on M&A transactions by empirical method. Our empirical tests have two perspectives, macro and micro. We find that in macro aspect, income tax rates have negative impact on M&A scale. In micro aspect, the rate of the acquired party has positive impact to the premium of the transaction and in taxable samples is significantly positive. The desire to… CONTINUE READING