Risk and rewards dynamics: Measuring the attractiveness of the fiscal regime in the presence of exploratory risks

Furtado, Lucas S.; Gonçalves, Edson Daniel Lopes; Costa, Luciano A.R.

doi:10.1016/j.enpol.2019.05.059

Cited by 1 publication

(1 citation statement)

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“…If the subject company does not meet the above commitments, the transaction price is higher than its actual value, so the financier should give the investor a certain amount of cash or equity compensation [9]- [11]. Alternatively, only unilateral compensation for the commitment is agreed upon when the initial transaction is completed at a pre-agreed transaction price and the performance meets or fails to meet the target [12].…”

Section: Introductionmentioning

confidence: 99%

Assessment of tax-related risks in corporate betting agreements based on vector autoregressive model

Zhang

2023

Applied Mathematics and Nonlinear Sciences

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This paper is based on the vector autoregressive (VAR) model, and the model optimization is completed by determining the lag order to eliminate the autocorrelation in the error term through model comparison. The variables in the tax-related risk of the betting agreement are formed into a vector form, the parameters are estimated by least squares or maximum likelihood estimation, and the interrelationship of the variables is analyzed by impulse response function. The vector autoregressive model was used to evaluate the tax-related risk of the betting agreement of Company M, and 12 factors were obtained. Among them, the factors that have more than 80% influence on tax-related risk are the lack of research on the betting agreement and the backwardness of the theoretical aspects of the handling of the betting agreement, with the influence of 87.89% and 84.98%, respectively. Therefore, the vector autoregressive model can effectively assess the tax-related risks in corporate betting agreements and provide a reference for companies diversifying into restructuring and mergers.

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Section: Introductionmentioning

confidence: 99%