Abstract

A substantial volume of related party sales (RPTs) within affiliated groups may be linked to tunneling practices. Yet, many such transactions are a natural part of operating activities and resource allocation among related parties. To comply with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, Taiwanese listed firms are required to prepare both consolidated and parent company-only financial statements. This reporting framework facilitates the breakdown of RP...

Abstract

Firms with more related party transactions have more opportunities to avoid tax. However, managers might arrange related party transactions based on different motivations; one is to opportunistically deprive minority interests (hereafter, the opportunistic hypothesis), and the other is to enhance contract efficiency (hereafter, the efficient-contracting hypothesis). This study aims to test whether the effects of different types of related party transactions on the degree of corporate tax avoidan...

Abstract

This paper examines the impact of appreciation in the stock price and currency of the acquirer on the announcement effect and long-run stock performance of acquisitions using deals from G7 countries and China. The empirical results show that a rise in stock price prior to the acquisition announcement is associated with significantly lower announcement abnormal returns and long-run stock performance, suggesting the presence of managerial overconfidence or overvaluation. In contrast, an appreciati...

Abstract

Foreign direct investment (FDI) is one of the key drivers of economic growth. Consequently, many governments adopt various tax competition strategies to attract greater inflows of FDI. This study employs the synthetic control method to conduct a counterfactual analysis of FDI performance in OECD countries that abolished inheritance (estate and gift) taxes after the year 2000, using data from 1994 to 2018. The objective is to examine the policy effect of abolishing inheritance taxes on FDI inflow...