Takeovers and taxes: Estimates from a two-sided matching model

Kazuki Onji (), Roger H. Gordon () and Tue Gørgens ()
Additional contact information
Kazuki Onji: The University of Osaka
Roger H. Gordon: University of California, San Diego
Tue Gørgens: Australian National University

No 25-10, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: In assessing the influence of taxes on corporate takeovers, sorting among firms poses complications. We employ a recently developed matching model that explicitly accounts for sorting behaviors, applying it for the first time to analyze tax implications in corporate takeover markets. Examining Japanese M&A transactions (1999–2018) between publiclytraded corporations, our estimates reveal heterogeneous effects, where the role of acquirer information and control perceptibly moderates the value of loss carryforwards across different transaction types. However, the estimated value generated from loss carryforwards is modest, indicating the stringency of Japan’s anti-avoidance rules.

Keywords: Corporate tax; corporate reorganization; M&As; matching estimator (search for similar items in EconPapers)
JEL-codes: G34 H25 H32 L20 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2025-09
New Economics Papers: this item is included in nep-pbe, nep-pub and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www2.econ.osaka-u.ac.jp/econ_society/dp/2510.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:osk:wpaper:2510

Access Statistics for this paper

More papers in Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by The Economic Society of Osaka University ().