Abstract
| Original language | English |
|---|---|
| Publication status | Published - 1 Jun 2019 |
| Event | 2019 Canadian Academic Accounting Association Annual Conference : Mind the GA(A)P - Ottawa, Canada Duration: 30 May 2019 → 1 Jun 2019 https://www.caaa.ca/news-and-events/mind-the-ga-a-p-caaa-annual-conference-2019/ |
Conference
| Conference | 2019 Canadian Academic Accounting Association Annual Conference |
|---|---|
| Abbreviated title | 2019 CAAA |
| Country | Canada |
| City | Ottawa |
| Period | 30/05/19 → 1/06/19 |
| Internet address |
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Banking Market Consolidation and Tax Planning Intermediation: Evidence from Tax Haven Operations of Client Firms. / KIM, Jeong Bon; LIN, Yupeng; MAO, Ying.
2019. Paper presented at 2019 Canadian Academic Accounting Association Annual Conference , Ottawa, Canada.Research output: Other Conference Contributions › Conference Paper (other) › Other Conference Paper › peer-review
TY - CONF
T1 - Banking Market Consolidation and Tax Planning Intermediation: Evidence from Tax Haven Operations of Client Firms
AU - KIM, Jeong Bon
AU - LIN, Yupeng
AU - MAO, Ying
PY - 2019/6/1
Y1 - 2019/6/1
N2 - In this study, we utilize the setting of bank M&As to examine banks’ role in tax planning intermediation through helping their clients establish offshore tax haven operations. After a bank M&A, the clients of the target bank “involuntarily” switch to a significantly larger relationship bank (the acquiring bank) with greater global presence and more expertise in structuring complex financial transactions, which allows those clients to receive better tax planning services. As a result, we find that after bank M&As, the clients of target banks experience significant increase in tax haven operations. The increase in tax haven operations is more pronounced when the acquiring bank is a universal bank and when the acquiring bank’s clients engage more in tax haven operations. Furthermore, we provide direct evidence that after bank M&As, the clients of target firms expand their operations into new tax haven countries where the acquiring banks’ pre-existing clients have operations.
AB - In this study, we utilize the setting of bank M&As to examine banks’ role in tax planning intermediation through helping their clients establish offshore tax haven operations. After a bank M&A, the clients of the target bank “involuntarily” switch to a significantly larger relationship bank (the acquiring bank) with greater global presence and more expertise in structuring complex financial transactions, which allows those clients to receive better tax planning services. As a result, we find that after bank M&As, the clients of target banks experience significant increase in tax haven operations. The increase in tax haven operations is more pronounced when the acquiring bank is a universal bank and when the acquiring bank’s clients engage more in tax haven operations. Furthermore, we provide direct evidence that after bank M&As, the clients of target firms expand their operations into new tax haven countries where the acquiring banks’ pre-existing clients have operations.
UR - https://www.caaa.ca/media/234594/caaa-annual-conference-program-online-pdf-2019-05-14.pdf
M3 - Conference Paper (other)
ER -