Impact of double taxation treaties on cross-border acquisitions

Catarina Pinto () and Miguel Sousa ()
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Catarina Pinto: School of Economics and Management, Universidade do Porto
Miguel Sousa: School of Economics and Management, Universidade do Porto

Notas Económicas, 2019, issue 48, 39-54

Abstract: “In order to evaluate the impact of Double Taxation Treaties (DTTs) on the Foreign Direct Investment (FDI), we analysed the impact of a DTT implementation on both the number of cross-border acquisitions and the average value of M&A deals between companies from the countries that signed the DTT. Moreover, the impact of DTTs on the takeover bid premiums is analysed in order to access if companies are willing to pay higher premiums after the DTT is implemented and whether the impact on the premium is immediate or gradual. Overall, our findings lead us to conclude that DTTs effectively promote FDI.”

Keywords: Double taxation treaties; cross-border acquisitions; takeover bid premiums; foreign direct investment. (search for similar items in EconPapers)
JEL-codes: F21 F23 F38 G34 H25 H26 H87 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:gmf:journl:y:2019:i:48:p:39:54

DOI: 10.14195/2183-203X_48_2

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