Arbeitspapier

The value of a loss: The impact of restricting tax loss transfers

to related objects

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: Englisch

Bibliographic citation: Series: ZEW Discussion Papers ; No. 23-037

Classification: 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: Mergers and acquisitions
anti-loss trafficking rules
taxes
market entry
market exit
productivity
innovation

Event: Geistige Schöpfung

(who): Bührle, Anna Theresa
Casi-Eberhard, Elisa
Stage, Barbara
Voget, Johannes

Event: Veröffentlichung

(who): ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung

(where): Mannheim

(when): 2023

Handle: http://hdl.handle.net/10419/279548

Last update: 10.03.2025, 11:43 AM CET

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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 value of a loss: The impact of restricting tax loss transfers

Tax Loss Carryforward Disclosure

Tax Loss Carryforward Disclosure

Loss evasion and tax aversion

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Loss evasion and tax aversion

Marginal deadweight loss when the income tax is nonlinear

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Marginal deadweight loss when the income tax is nonlinear

Marginal deadweight loss when the income tax is nonlinear

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Marginal deadweight loss when the income tax is nonlinear

Tax loss carryforward disclosure and uncertainty

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Tax loss carryforward disclosure and uncertainty

Tax loss carryforward disclosure and uncertainty

Tax loss carryforward disclosure and uncertainty

Essays on the Investment and Tax Revenue Effects of Tax Loss Offset Provisions

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 rectrictions based on micro data

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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

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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 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 restrictions based on micro data

The value of a loss: The impact of restricting tax loss transfers

The value of a loss: The impact of restricting tax loss transfers

Tax Loss Carryforward Disclosure

Tax Loss Carryforward Disclosure

Loss evasion and tax aversion

Arbeitspapier

Loss evasion and tax aversion

Marginal deadweight loss when the income tax is nonlinear

Arbeitspapier

Marginal deadweight loss when the income tax is nonlinear

Marginal deadweight loss when the income tax is nonlinear

Arbeitspapier

Marginal deadweight loss when the income tax is nonlinear

Tax loss carryforward disclosure and uncertainty

Arbeitspapier

Tax loss carryforward disclosure and uncertainty

Tax loss carryforward disclosure and uncertainty

Tax loss carryforward disclosure and uncertainty

Essays on the Investment and Tax Revenue Effects of Tax Loss Offset Provisions

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 rectrictions based on micro data

Arbeitspapier

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

Arbeitspapier

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 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 restrictions based on micro data

The value of a loss: The impact of restricting tax loss transfers

The value of a loss: The impact of restricting tax loss transfers

Tax Loss Carryforward Disclosure

Tax Loss Carryforward Disclosure

Loss evasion and tax aversion

Arbeitspapier

Loss evasion and tax aversion

Marginal deadweight loss when the income tax is nonlinear

Arbeitspapier

Marginal deadweight loss when the income tax is nonlinear

Marginal deadweight loss when the income tax is nonlinear

Arbeitspapier

Marginal deadweight loss when the income tax is nonlinear

Tax loss carryforward disclosure and uncertainty

Arbeitspapier

Tax loss carryforward disclosure and uncertainty

Tax loss carryforward disclosure and uncertainty

Tax loss carryforward disclosure and uncertainty

Essays on the Investment and Tax Revenue Effects of Tax Loss Offset Provisions

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 rectrictions based on micro data

Arbeitspapier

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

Arbeitspapier

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 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 restrictions based on micro data

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