This paper analyzes a two-country model with an international investor considering acquisitions of already existing target firms in a high-tax country and a low-tax country. The investor is able to shift profits from one location to another for tax saving purposes. Two systems of corporate taxation are compared, a system with separate accounting and a system with tax base consolidation and form...

We analyse the timing of competitive bids. There are two buyers in our model, each of whom decide when and how much to bid for an object. These agents’ valuations are commonly known, but are driven by a stochastic state variable that varies randomly over time. We assume that agent 1 (2) has the higher valuation when the state is high (low). We show first that there is delay in equilibrium: agen...

Using terrorist attacks as an exogenous shock to uncertainty, we provide evidence that firms located near terrorism-stricken areas are less likely takeover targets for two years after the attack and receive lower acquisition premiums. The latter finding is reflected in target firm abnormal returns synergy gains. Additionally, areas, associated with a share of synergies, withdrawn deals rise, ac...

This paper investigates ex-ante factors influencing international bank acquisition of FinTech companies from 2010–2018. Using hand-collected data, we show that boards with a larger female presence as well those have CEOs longer tenure are more likely to pursue acquisitions. The financial performance also matters banks greater capital strength and liquidity be acquirers. In line prior expectatio...

There is a curvilinear relation between credit ratings and acquisitions. Non-investment grade firms make more acquisitions as their improve, consistent with the relaxation of financial constraints. However, this pattern reverses for investment firms, supporting view that such want to preserve rating are concerned about acquisition-related downgrades. Abnormal returns first decrease then increas...