search query: @author Vincent, L. / total: 5
reference: 4 / 5
| Author: | Maydew, E. Schipper, K. Vincent, L. |
| Title: | The impact of taxes on the choice of diverstiture method |
| Journal: | Journal of Accounting & Economics
1999 : DEC, VOL. 28:2, p. 117-150 |
| Index terms: | TAXATION ACCOUNTING ECONOMICS |
| Language: | eng |
| Abstract: | This paper estimates the magnitude of tax costs and their impact on the decision to divest assets via a taxable sale rather than a tax-free spin-off. The authors find that the tax costs are substantial, averaging 8% of market value of the divested assets, and that cross-sectional variation in tax costs has a large impact on managers' choice of divestiture method. The authors' results are consistent with two explanations. |
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