Huizinga, Harry and Voget, Johannes (2009) International taxation and the direction and volume of cross-border M&As. The Journal of Finance, 64 (3). pp. 1217-1249.
Download (212kB) | Preview
We show that the parent-subsidiary structure of multinational firms created by cross-border mergers and acquisitions is affected by the prospect of international double taxation. Specifically, the likelihood of parent firm location in a country following a cross-border takeover is reduced by high international double taxation of foreign-source income. At the same time, countries with high international double taxation attract smaller numbers of parent firms. A unilateral elimination of worldwide taxation by the United States is simulated to increase the proportion of parent firms locating in the United States following cross-border mergers and acquisitions from 53% to 58%.
|Centre:||Oxford University Centre for Business Taxation|
|Date Deposited:||29 May 2012 10:54|
|Last Modified:||23 Oct 2015 14:07|
Actions (login required)