Abstract
This study examines the effect of banking market consolidations via mergers and acquisitions (M&As) on the role of banks in intermediating corporate tax planning through offshore tax haven operations. We find that bank clients significantly increase their tax haven operations after their banks are merged with others. In addition, such an increase is greater when a commercial bank merges with an investment bank and when the clients have greater tax planning opportunities. We also employ network analyses to show that the propensity for a client to expand its operations into a new tax haven country increases significantly when its relationship bank enters into this country through an M&A. Collectively, our findings reveal that bank M&As enhance banks’ tax intermediation capability.
| Original language | English |
|---|---|
| Pages (from-to) | 217–245 |
| Journal | The Accounting Review |
| Volume | 98 |
| Issue number | 4 |
| Online published | 25 Oct 2022 |
| DOIs | |
| Publication status | Published - Jul 2023 |
Bibliographical note
Research Unit(s) information for this publication is provided by the author(s) concerned.Publisher's Copyright Statement
- COPYRIGHT TERMS OF DEPOSITED POSTPRINT FILE: Kim, J-B., Lin, Y., Mao, Y., & Wang, Z. (2023). Banking Market Consolidation and Tax Planning Intermediation: Evidence from Client Firm Tax Haven Operations. The Accounting Review, 98(4), 217–245. https://doi.org/10.2308/TAR-2019-0243.
