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Taxes and Mergers in Sweden

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  • Modén, Karl-Markus

    (Research Institute of Industrial Economics (IFN))

Abstract

This paper studies the relative importance of tax incentives as merger motives in the Swedish industry during the period 1983-1987. Several econometric models are estimated and statistical tests performed. The tax-hypothesis is contrasted with an alternative hypothesis, suggested by Jensen, which explains mergers as a way for independent managers to increase their personal power. Neither hypothesis get any strong support in this study, the evidence is somewhat stronger in favor of Jensen's theory however.

Suggested Citation

  • Modén, Karl-Markus, 1989. "Taxes and Mergers in Sweden," Working Paper Series 242, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0242
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    File URL: https://www.ifn.se/wfiles/wp/wp242.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Tax incentives; merger motives; manager independence;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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