Arbeitspapier
The value of a loss: The impact of restricting tax loss transfers
We study the economic consequences of anti-loss trafficking rules, which disallow the use of loss carry-forwards as tax shield after a substantial ownership change. Using staggered changes to these rules, we find that limiting the transfer of tax losses reduces the number of M&As with loss-making targets by 22%. We further observe decreases in birth and survival rates of young companies in response to stricter regulations and vice versa. Tightening (loosening) anti-loss trafficking rules impairs (increases) return on assets, especially for R&D-intensive firms, and stricter rules lead to a decrease in successful patent applications.
- Language
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Englisch
- Bibliographic citation
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Series: ZEW Discussion Papers ; No. 23-037
- Classification
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Wirtschaft
Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
Corporate Finance and Governance: Government Policy and Regulation
Business Taxes and Subsidies including sales and value-added (VAT)
- Subject
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Mergers and acquisitions
anti-loss trafficking rules
taxes
market entry
market exit
productivity
innovation
- Event
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Geistige Schöpfung
- (who)
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Bührle, Anna Theresa
Casi-Eberhard, Elisa
Stage, Barbara
Voget, Johannes
- Event
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Veröffentlichung
- (who)
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ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
- (where)
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Mannheim
- (when)
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2023
- Handle
- Last update
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10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Bührle, Anna Theresa
- Casi-Eberhard, Elisa
- Stage, Barbara
- Voget, Johannes
- ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
Time of origin
- 2023
Other Objects (12)
The value of a loss: The impact of restricting tax loss transfers
The loss of the "Kent"
Tax loss amortization of companies in Slovakia
The cost of job loss
Essays on the Investment and Tax Revenue Effects of Tax Loss Offset Provisions
Tax loss offset restrictions - last resort for the treasury? An empirical evaluation of tax loss offset restrictions based on micro data
Tax loss offset restrictions - last resort for the treasury? An empirical evaluation of tax loss offset restrictions based on micro data
Tax loss offset restrictions: Last resort for the treasury? An empirical evaluation of tax loss offset rectrictions based on micro data
Tax loss offset restrictions - last resort for the treasury? An empirical evaluation of tax loss offset restrictions based on micro data
On the Value of Incumbency: Managerial Reference Point and Loss Aversion
Loss evasion and tax aversion
Gone the Bull of Winter: Climate Change as the Loss of Culture and the Culture of Loss
The value of a loss: The impact of restricting tax loss transfers
The loss of the "Kent"
Tax loss amortization of companies in Slovakia
The cost of job loss
Essays on the Investment and Tax Revenue Effects of Tax Loss Offset Provisions
Tax loss offset restrictions - last resort for the treasury? An empirical evaluation of tax loss offset restrictions based on micro data
Tax loss offset restrictions - last resort for the treasury? An empirical evaluation of tax loss offset restrictions based on micro data
Tax loss offset restrictions: Last resort for the treasury? An empirical evaluation of tax loss offset rectrictions based on micro data
Tax loss offset restrictions - last resort for the treasury? An empirical evaluation of tax loss offset restrictions based on micro data
On the Value of Incumbency: Managerial Reference Point and Loss Aversion
Loss evasion and tax aversion
Gone the Bull of Winter: Climate Change as the Loss of Culture and the Culture of Loss
The value of a loss: The impact of restricting tax loss transfers
The loss of the "Kent"
Tax loss amortization of companies in Slovakia
The cost of job loss
Essays on the Investment and Tax Revenue Effects of Tax Loss Offset Provisions
Tax loss offset restrictions - last resort for the treasury? An empirical evaluation of tax loss offset restrictions based on micro data
Tax loss offset restrictions - last resort for the treasury? An empirical evaluation of tax loss offset restrictions based on micro data
Tax loss offset restrictions: Last resort for the treasury? An empirical evaluation of tax loss offset rectrictions based on micro data
Tax loss offset restrictions - last resort for the treasury? An empirical evaluation of tax loss offset restrictions based on micro data
On the Value of Incumbency: Managerial Reference Point and Loss Aversion
Loss evasion and tax aversion