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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: 2018
New Economics Papers: this item is included in nep-dcm, nep-knm, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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https://warwick.ac.uk/fac/soc/economics/research/w ... /twerp_1168_wiji.pdf

Related works:
Journal Article: Taxes and the location of targets (2019) Downloads
Working Paper: Taxes and the Location of Targets (2017) Downloads
Working Paper: Taxes and the Location of Targets (2017) Downloads
Working Paper: Taxes and the Location of Targets (2017) Downloads
Working Paper: Taxes and the Location of Targets (2012) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:wrk:warwec:1168

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