@article{21427, abstract = {{Under the German Inheritance Tax and Gift Tax Act, the transfer of business assets can be exempted from taxation up to 100%. However, this exemption depends on the evolution of the company’s payroll, which is highly uncertain. We model the uncertain nature of payroll evolution using a Geometric Brownian motion. We obtain closed-form solutions for the expected effective exemption and for the expected effective tax rate. We find that the uncertainty effect is most pronounced for moderate negative and positive growth rates. Furthermore, higher uncertainty reduces the value of the effective tax exemption. Also, we find that the (partially progressive) German inheritance tax function by trend promotes standard exemption. The results enable tax planners to make an optimal choice between standard or full exemption and allow for calculating the expected tax burden.}}, author = {{Diller, Markus and Späth, Thomas and Lorenz, Johannes}}, journal = {{Journal of Business Economics}}, number = {{5}}, pages = {{599--626}}, title = {{{Inheritance Tax Planning with Uncertain Future Payroll Expenses: An Analytical Solution to the Optimal Choice between Full and Standard Exemption}}}, volume = {{89}}, year = {{2019}}, } @article{20688, abstract = {{We offer the first empirical analysis connecting the timing of general partner (GP) compensation to private equity fund performance. Using detailed information on limited partnership agreements between private equity limited and general partners, we find that “GP-friendly” contracts—agreements that pay general partners on a deal-by-deal basis instead of withholding carried interest until a benchmark return has been earned—are associated with higher returns, both gross and net of fees. This is robust to measures of performance persistence, time period effects, and other contract terms and is related to exit-timing incentives. Timing practices balance GP incentives against limited partner downside protection.}}, author = {{Hüther, Niklas and Robinson, David T. and Sievers, Sönke and Hartmann-Wendels, Thomas}}, issn = {{0025-1909}}, journal = {{Management Science (VHB-JOURQUAL 3 Ranking A+)}}, keywords = {{venture capital, compensation, private equity, VC partnership, pay-performance relation}}, number = {{4}}, pages = {{1756--1782}}, title = {{{Paying for Performance in Private Equity: Evidence from Venture Capital Partnerships}}}, doi = {{10.1287/mnsc.2018.3274}}, volume = {{66}}, year = {{2019}}, } @techreport{20875, author = {{Sievers, Sönke and Kengelbach, Jens and Keienburg, Georg and Bader, Maximilian and Degen, Dominik and Gell, Jeff and Nielsen, Jesper}}, publisher = {{The Boston Consulting Group, Inc., M&A Report}}, title = {{{Downturns Are a Better Time For Deal Hunting}}}, year = {{2019}}, } @article{4561, abstract = {{We exploit a unique sample of structured financial products (SFPs) to analyze pricing and issuance dependencies among different types of such market‐linked investment vehicles. Our study provides evidence of cross‐pricing between products with complementary payoff profiles. Such dependencies may be explained by issuers’ efforts to generate order flow for products that supplement their current SFP risk exposure. Additionally, we observe issuance patterns in line with the argument that issuers exploit the complementarity payout profiles when bringing SFPs to market. Our study emphasizes cross‐pricing from a perspective not previously considered in the literature.}}, author = {{Pelster, Matthias and Schertler, Andrea}}, journal = {{Journal of Futures Markets}}, keywords = {{cross‐pricing, discount certificate, hedging, issuance decisions, put warrants, structured financial products}}, number = {{3}}, pages = {{342--365}}, title = {{{Pricing and issuance dependencies in SFP portfolios}}}, doi = {{10.1002/fut.21978}}, volume = {{39}}, year = {{2019}}, } @article{8892, author = {{Pelster, Matthias and Breitmayer, Bastian}}, issn = {{0167-2681}}, journal = {{Journal of Economic Behavior & Organization}}, pages = {{158--179}}, title = {{{Attracting attention from peers: Excitement in social trading}}}, doi = {{10.1016/j.jebo.2019.03.010}}, volume = {{161}}, year = {{2019}}, } @techreport{5411, abstract = {{Öffentlich gelistete Firmen, die die Mehrheit an anderen börsennotierten Unternehmen er-werben und den Kapitalmarkt an den Synergieerwartungen teilhaben lassen, werden mit höheren kumulativen abnormalen Renditen im Ankündigungszeitpunkt belohnt verglichen mit solchen Unternehmen, die diese geheim halten. Des Weiteren ist die empirische Evi-denz konsistent mit der Idee, dass diese Käuferunternehmen ihre Transaktionen besser in-tegrieren, weil auch die industrieadjustierten Ein- und Zweijahresrenditen der ankündigen-den Unternehmen ökonomisch und statistisch signifikant höher sind als die der zurückhal-tenden Käuferfirmen. }}, author = {{Mehring, Oliver and Sievers, Sönke and Keienburg, Georg and Kengelbach, Jens}}, pages = {{76--84}}, publisher = {{Corporate Finance}}, title = {{{Wertgenerierung bei M&A Transaktionen durch Bekanntgabe von Synergien?}}}, volume = {{3-4}}, year = {{2019}}, } @techreport{12077, abstract = {{Die Komplexität von Steuersystemen gewinnt in der Debatte um den internationalen Steuerwettbewerb zunehmend an Bedeutung. Im vorliegenden Beitrag erfolgt, basierend auf den Daten, die dem Tax Complexity Index (www.taxcomplexity.org) zugrunde liegen, eine umfassende Gegenüberstellung der Komplexität der Steuersysteme von Deutschland und Öster-reich unter Berücksichtigung der Mittelwerte aller Länder. Die Steuergesetze weisen sowohl in Deutschland als auch in Österreich einen verhältnismäßig hohen Grad an Komplexität auf. Bei den steuerlichen Rahmenbedingungen fällt der Grad an Komplexität in beiden Ländern dagegen niedrig aus, wobei Österreich im Durchschnitt weniger komplex ist als Deutschland.}}, author = {{Hoppe, Thomas and Rechbauer, Martina and Sturm, Susann}}, title = {{{Steuerkomplexität im Vergleich zwischen Deutschland und Österreich – Eine Analyse des Status quo}}}, year = {{2019}}, } @techreport{15367, abstract = {{n this paper, I review the empirical literature in the intersection of banks and corporate income taxation that emerged over the last two decades. To structure the included studies, I use a stakeholder approach and outline how corporate income taxation plays into the relation of banks and their four main stakeholders: bank regulators, customers, investors and tax authorities. My contribution to the literature is threefold: First, I contribute by providing, to the best of my knowledge, a first comprehensive review on this topic. Second, I point to areas for future research. Third, I deduce policy implications from the studies under review. In sum, the studies show that taxes distort banks’ pricing decisions, the relative attractiveness of debt and equity financing, the decision to report on or off the balance sheet and banks’ investment allocations. Empirical insights on how tax rules affect banks’ decision-making are helpful for policymakers to tailor suitable and sustainable tax legislation directed at banks. }}, author = {{Gawehn, Vanessa}}, keywords = {{corporate income taxes, banks, stakeholder approach, decision-making process}}, pages = {{34}}, publisher = {{SSRN}}, title = {{{Banks and Corporate Income Taxation: A Review}}}, year = {{2019}}, } @techreport{14902, author = {{Mair, Christina and Scheffler, Wolfram and Senger, Isabell and Sureth-Sloane, Caren}}, title = {{{Analyse der Veränderung der zwischenstaatlichen Gewinnaufteilung bei Einführung einer standardisierten Gewinnverteilungsmethode am Beispiel des Einsatzes von 3D-Druckern}}}, volume = {{42}}, year = {{2019}}, } @article{14904, abstract = {{Die Komplexität von Steuersystemen gewinnt in der Debatte um den internationalen Steuerwettbewerb zunehmend an Bedeutung. Im vorliegenden Beitrag erfolgt, basierend auf den Befragungsdaten, die dem Tax Complexity Index von Hoppe et al. (2019) zugrunde liegen, eine umfassende Gegenüberstellung der Komplexität der Steuersysteme von Deutschland und Österreich unter Berücksichtigung der Mittelwerte aller vom Index abgedeckten Länder. Die Steuergesetze weisen sowohl in Deutschland als auch in Österreich einen verhältnismäßig hohen Grad an Komplexität auf. Bei den steuerlichen Rahmenbedingungen fällt der Grad an Komplexität in beiden Ländern dagegen niedrig aus, wobei Österreich im Durchschnitt weniger komplex ist als Deutschland.}}, author = {{Hoppe, Thomas and Rechbauer, Martina and Sturm, Susann}}, journal = {{Steuer und Wirtschaft}}, number = {{4}}, pages = {{397--412}}, title = {{{Steuerkomplexität im Vergleich zwischen Deutschland und Österreich - Eine Analyse des Status quo}}}, volume = {{96}}, year = {{2019}}, } @article{14905, abstract = {{A key premise underlying most of the economic literature is that rational decision-makers will choose dominant strategies over dominated alternatives. However, prior literature in various disciplines including business, psychology, and economics document a series of phenomena associated with violations of the dominance principle in decision-making. In this comprehensive review, we discuss conditions under which people violate the dominance principle in decision-making. When presenting violations of dominance in empirical and experimental studies, we differentiate between absolute, statewise, and stochastic (first- and second-order) violations of dominance. Furthermore, we categorize the literature by the leading causes for dominance violations: framing, reference points, certainty effects, bounded rationality, and emotional responses.}}, author = {{Kourouxous, Thomas and Bauer, Thomas}}, issn = {{2198-3402}}, journal = {{Business Research}}, number = {{1}}, pages = {{209--239}}, title = {{{Violations of Dominance in Decision-Making}}}, doi = {{10.1007/s40685-019-0093-7}}, volume = {{12}}, year = {{2019}}, } @article{14910, author = {{Majdanska, Alicja and Wu, Yuchen}}, journal = {{Tax Notes International}}, number = {{10}}, pages = {{1045--1065}}, title = {{{Using Impact Evaluation to Examine Domestic and International Cooperative Compliance Programs}}}, volume = {{93}}, year = {{2019}}, } @article{13121, author = {{Breitmayer, Bastian and Hasso, Tim and Pelster, Matthias}}, issn = {{0165-1765}}, journal = {{Economics Letters}}, title = {{{Culture and the disposition effect}}}, doi = {{10.1016/j.econlet.2019.108653}}, volume = {{184}}, year = {{2019}}, } @article{13122, author = {{Breitmayer, Bastian and Massari, Filippo and Pelster, Matthias}}, issn = {{1059-0560}}, journal = {{International Review of Economics & Finance}}, pages = {{443--464}}, title = {{{Swarm intelligence? Stock opinions of the crowd and stock returns}}}, doi = {{10.1016/j.iref.2019.08.006}}, volume = {{64}}, year = {{2019}}, } @techreport{13137, abstract = {{Non-GAAP reporting is under debate as managers may opportunistically inflate non-GAAP earnings. By separating firms into groups based on exclusions of recurring expenses before material restatements occur this paper investigates whether market participants are misled based on ex-ante non-GAAP reporting. The results show a decline in cumulative abnormal returns (–11.8% aggressive non-GAAP Reporting vs. –2.7% non-aggressive non-GAAP reporting), reduction in overvaluation (–22.18% vs. no decline) and losses in the earnings response coefficient (–51.8% vs. no significant decline) for firms with prior aggressive non-GAAP reporting. Further, we document that investors are less responsive to aggressively reported non-GAAP earnings ex-post, indicating that increased attention enhances investor’s ability to see through the quality of non-GAAP exclusions. }}, author = {{Müller, Jens and Sievers, Sönke and Mehring, Oliver and Sofilkanitsch, Christian}}, keywords = {{Keywords: non-GAAP reporting, restatements, information content of earnings, firm value, overvaluation}}, pages = {{65}}, title = {{{Non-GAAP Reporting and Investor Attention: Are Investors Misled by Exclusions of Recurring Expenses from Non-GAAP Earnings before Restatement Announcements?}}}, year = {{2019}}, } @techreport{13146, abstract = {{Employing a sample of 492 merger and acquisition (M&A) announcements from 284 acquirers across North America and Europe between 2005 and 2018, this study analyzes the impact of M&A announcements on an acquirers abnormal CDS spread changes. We find that spreads from CDS which are written on acquirers increase by 310 bps during a symmetric five-day event window suggesting that investors expect an increase in the acquirers credit risk exposure due to M&As. Next to this baseline finding, we conduct a large variety of sensitivity analyses to gain more insight into the driving factors of the rising risk perception of CDS investors due to M&A announcements.}}, author = {{Hippert, Benjamin}}, keywords = {{credit default swaps, risk perception of CDS investors, mergers and acquisitions, event study}}, title = {{{The relationship between announcements of complete mergers and acquisitions and acquirers' abnormal CDS spread changes}}}, year = {{2019}}, } @article{10103, abstract = {{We investigate the demographic characteristics, trading patterns, and performance of 465.926 brokerage accounts with respect to cryptocurrency trading. We find that cryptocurrency trading became increasingly popular across individuals of all different groups of age, gender, and trading patterns. Yet, men are more likely to engage in cryptocurrency trading, trade more frequently, and more speculative, respectively. As a result, men realize lower returns. Furthermore, we find that investors vary their trading patterns across different asset classes.}}, author = {{Hasso, Tim and Pelster, Matthias and Breitmayer, Bastian}}, journal = {{Journal of Behavioral and Experimental Finance}}, keywords = {{Cryptocurrencies Bitcoin Trading Investor returns Demographics}}, pages = {{64--74}}, publisher = {{Elsevier}}, title = {{{Who trades cryptocurrencies, how do they trade it, and how do they perform? Evidence from brokerage accounts}}}, doi = {{10.1016/j.jbef.2019.04.009}}, volume = {{23}}, year = {{2019}}, } @article{10279, abstract = {{Are cryptocurrency traders driven by a desire to invest in a new asset class to diversify their portfolio or are they merely seeking to increase their levels of risk? To answer this question, we use individual-level brokerage data and study their behavior in stock trading around the time they engage in their first cryptocurrency trade. We find that when engaging in cryptocurrency trading investors simultaneously increase their risk-seeking behavior in stock trading as they increase their trading intensity and use of leverage. The increase in risk-seeking in stocks is particularly pronounced when volatility in cryptocurrency returns is low, suggesting that their overall behavior is driven by excitement-seeking. }}, author = {{Pelster, Matthias and Breitmayer, Bastian and Hasso, Tim}}, issn = {{0165-1765}}, journal = {{Economics Letters}}, keywords = {{cryptocurrencies, bitcoin, investor, risk-seeking}}, pages = {{98--100}}, title = {{{Are cryptocurrency traders pioneers or just risk-seekers? evidence from brokerage accounts}}}, doi = {{10.1016/j.econlet.2019.06.013}}, volume = {{182}}, year = {{2019}}, } @article{4562, abstract = {{Employing main and sector-specific investment-grade CDS indices from the North American and European CDS market and performing mean-variance out-of-sample analyses for conservative and aggressive investors over the period from 2006 to 2014, this paper analyzes portfolio benefits of adding corporate CDS indices to a traditional financial portfolio consisting of stock and sovereign bond indices. As a baseline result, we initially find an increase in portfolio (downside) risk-diversification when adding CDS indices, which is observed irrespective of both CDS markets, investor-types and different sub-periods, including the global financial crisis and European sovereign debt crisis. In addition, the analysis reveals higher portfolio excess returns and performance in CDS index portfolios, however, these effects clearly differ between markets, investor-types and sub-periods. Overall, portfolio benefits of adding CDS indices mainly result from the fact that institutional investors replace sovereign bond indices rather than stock indices by CDS indices due to better risk-return characteristics. Our baseline findings remain robust under a variety of robustness checks. Results from sensitivity analyses provide further important implications for institutional investors with a strategic focus on a long-term conservative portfolio management.}}, author = {{Hippert, Benjamin and Uhde, André and Wengerek, Sascha Tobias}}, journal = {{Review of Derivatives Research }}, keywords = {{Corporate credit default swap indices, Mean-variance asset allocation, Out-of-sample portfolio optimization, Portfolio risk-diversification, Portfolio performance evaluation}}, number = {{2}}, pages = {{203--259}}, title = {{{Portfolio Benefits of Adding Corporate Credit Default Swap Indices: Evidence from North America and Europe}}}, doi = {{https://doi.org/10.1007/s11147-018-9148-8}}, volume = {{22}}, year = {{2019}}, } @techreport{36004, abstract = {{Employing a unique sample of 2,849 tariff imposition announcements by and against the United States (U.S.) over the period from 2018 to 2019, this study analyzes the impact of recent tariff announcements on share prices from 859 U.S. companies. We provide evidence for negative (cumulative) average abnormal stock returns due to tariff announcements during a symmetric three-day event window. We suggest that stock market investors expect adverse impacts of tariff impositions, e.g. a decrease in the companies' future cash flows and a threat of retaliation. The negative wealth effects are observed irrespective of whether the Trump administration announces safeguard tariffs to protect domestic firms or a retaliation is declared by foreign countries. Moreover, building several subsamples, we find that the adverse impact is mostly driven by announcements involving China and is associated with a variety of sector, tariff, trade and firm characteristics. }}, author = {{Wengerek, Sascha Tobias and Uhde, André}}, keywords = {{event study, international relations, protectionism, strategic trade policy, tariffs, trade conflict}}, publisher = {{Paderborn University}}, title = {{{Share price reactions to tariff imposition announcements in the Trump era – An event study of the trade conflict}}}, year = {{2019}}, }