Publication Type

Conference Paper

Publication Date



We examine whether and how the tax haven subsidiary profiles of U.S. acquirers and targets affect M&A pairing. Using disclosed material subsidiary data, we develop two measures of tax haven subsidiary relatedness between the acquirer and its target. Examining the associations of these measures with the probability of merger pair formation, the results suggest that acquirers are more likely to select targets whose subsidiaries are located in tax havens similar to their own, consistent with economies of scale in tax planning. This relation suggests that firms’ past tax planning decisions have significant effects on their future real corporate decisions.


Tax Planning, Tax Havens, Mergers and Acquisitions


Accounting | Taxation

Research Areas

Financial Performance Analysis


Auckland Finance Meeting 2014, 18-20 December

City or Country


Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.


This paper was also presented at the 2013 American Accounting Association Annual Meeting held in Anaheim, California, USA and at the ATA Mid-year Meeting and the 2014 AAA International Mid-year Meeting held in San Antonio, USA.