Going concern opinions and IPO pricing accuracy

Review of Quantitative Finance and Accounting - In a marked shift, it has become relatively more common for ordinary initial public offerings (IPOs) to contain going concern opinions (GCOs) in...     

How Does National Culture Impact Internalization Benefits in Cross‐Border Mergers and Acquisitions?

We examine how cultural differences between bidder and target countries impact internalization benefits in cross‐border takeovers. The value of internalizing intangible assets may increase if cultural differences create high transaction costs. On the other hand, integration difficulties between culturally distant acquirers and targets may reduce the value of internalization. Our results show that greater cultural distance (CD) has a positive influence on the long‐run performance of bidders with high intangibles, suggesting that significant internalization benefits from technological know‐how are realized when CD is great. These findings highlight the importance of national culture when examining internalization benefits in cross‐border mergers.     

Tax Havens,Tax Evasion and Tax Information Exchange Agreements in the OECD

Using data on Foreign Portfolio Investment (FPI), we find a positive relationship between higher tax burden and OECD residents’ tax evasion, especially via tax havens. Contrary to established investor preference for certain country characteristics, we find they are less important to tax evaders who value privacy and want to remain undetected by their home tax authorities. We find very limited evidence that OECD Tax Information Exchange Agreements (TIEAS) reduce tax evasion, controlling for other determinants of overall OECD FPI. Without the US in the OECD sample, tax havens play a lesser role and OECD policies appear to make a marginal impact.