000			01338nam a22001817a 4500
008			190323b xxu||||| |||| 00| 0 eng d
022			_a0304-405X
245			_aCapital gains taxation and the cost of capital: Evidence from unanticipated cross-border transfers of tax base / by Harry Huizinga, Johannes Voget & Wolf Wagner _cHarry Huizinga, Johannes Voget & Wolf Wagner
260			_aAmsterdam _bElsevier _cAugust 2018
300			_aPages 306-328
440			_a Journal of Financial Economics _v129 (2) _x0304-405X
500			_aAbstract 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. We estimate that a 1 percentage point increase in the capital gains tax rate reduces the value of equity by around 0.3%, which suggests that the capital gains tax significantly raises firms’ cost of capital. Furthermore, we find that the implied capital gains tax burden is higher at times of high economic growth and low stock market valuation.
690			_aCapital gains taxation
690			_aCost of capital
690			_aInternational takeovers
690			_aTakeover premium
942			_2lcc _cSE
999			_c361364 _d361364