Taxes and the location of targets

• 成果类型: Article
• 署名作者: Arulampalam, Wiji; Devereux, Michael P.; Liberini, Federica
• 署名单位: University of Warwick; University of Oxford; IZA Institute Labor Economics; Swiss Federal Institutes of Technology Domain; ETH Zurich
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2019.05.005
• 发表日期: 2019
• 页码: 161-178
• 关键词: Multinational enterprises; Cross-border expansion; Target choice; Corporation income tax; mixed logit

摘要

We use firm-level data to investigate the impact of taxes on the international location of targets in M&A, allowing for domestic acquisitions and heterogeneous responses by companies. The statutory tax rate in the target country is found to have a negative impact on the probability of an acquisition in that country. In addition, the estimated size of the effect is found to depend on whether (i) acquirer is a domestic or a multinational enterprise; (ii) the acquisition is domestic or cross-border; and (iii) the acquirer's country has a worldwide or territorial tax system. (C) 2019 Elsevier B.V. All rights reserved.