TY - THES A1 - Rajapakse, Shalini T1 - An Event Study Analysis of Tax Inversion Announcements N2 - This paper examines the short-term effects of tax inversion announcements on inverting firmsĀ“ share prices, and thereby analyses the value creation of inversion activities. For the analysis, the paper looks at a sample of 41 inverted U.S. firms during the time period of 1994 to 2015. To quantify the stock returns related to inversion announcements, event study method has been implemented. Using the parametric t-test, the paper finds evidence indicating that the announcements of tax inversions have a significant negative impact on firm value with -4.8%. 16 out of 41 investigated firms show value changing effects associated with inversions. The highest impact on stock prices are captured directly on the announcement day. Furthermore, the performance of pharmaceutical and Irish incorporated deals indicate positive market reactions with 7.30% and 5.9% respectively. KW - Aggressive tax planning KW - tax inversions KW - M&As KW - event study methodology Y1 - 2019 UR - https://opus4.kobv.de/opus4-hwr/frontdoor/index/index/docId/1357 UR - https://nbn-resolving.org/urn:nbn:de:kobv:b721-opus4-13579 ER -