Taxes and the Location of Targets

Wiji Arulampalam, Michael Devereux and Federica Liberini

The Warwick Economics Research Paper Series (TWERPS) from University of Warwick, Department of Economics

Abstract: We use firm-level data to investigate the impact of taxes on the international location of targets in M & A allowing for 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.

Keywords: Multinational enterprises; cross-border expansion; target choice; corporation income tax; mixed logit (search for similar items in EconPapers)
JEL-codes: C25 G34 H25 H32 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://warwick.ac.uk/fac/soc/economics/research/w ... /twerp_1135_wiji.pdf

Related works:
Journal Article: Taxes and the location of targets (2019)
Working Paper: Taxes and the Location of Targets (2017)
Working Paper: Taxes and the Location of Targets (2017)
Working Paper: Taxes and the Location of Targets (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wrk:warwec:1135

Access Statistics for this paper

More papers in The Warwick Economics Research Paper Series (TWERPS) from University of Warwick, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Margaret Nash ().