Discussion of "Target's Tax Shelter Participation and Takeover Premiums"1. (4th June 2016)

• Record Type: Journal Article
• Authors: Shevlin, Terry
• Is Part Of: Contemporary accounting research. Volume 33:Number 4(2016:Dec.)
• Page Start: 1473
• Page End: 1488
• Publication Date: 2016-06-04
• Subjects: Accounting -- Research -- Periodicals; Accounting -- Canada -- Periodicals; 657
• DOI: 10.1111/1911-3846.12227
• Languages: English
• ISSNs: 0823-9150

Abstract

Abstract: Chow, Klassen, and Liu (2016 ), hereafter CKL, examine whether M&A bidding firms are willing to pay more for target firms that disclose they have not participated in a "tax shelter" sometime in the past. My discussion provides an overview of the past and current tax literature in accounting and places CKL within this expanding literature. I then provide a critique of this interesting and well‐executed study that exploits an unusual disclosure to examine tax shelter participation effects.