Huizinga, Harry; Voget, Johannes; Wagner, Wolf - C.E.P.R. Discussion Papers - 2012
In a cross-border takeover, the tax base associated with future capital gains is transferred from target shareholders … to acquirer shareholders. Cross-country differences in capital gains tax rates enable us to estimate the discount in … target valuation on account of future capital gains. A one percentage point increase in the capital gains tax rate reduces …