Taxes and the location of targets

Arulampalam, Wiji, Devereux, Michael and Liberini, Federica (2018) Taxes and the location of targets. Centre for Business Taxation Working Paper, Oxford.

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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.

Item Type: Other Working Paper
Keywords: Oxford University Centre for Business Taxation; Multinational enterprises, cross-border expansion, target choice, corporation income tax, mixed logit. �
Subject(s): Taxation
Centre: Oxford University Centre for Business Taxation > CBT Working Papers
Date Deposited: 18 Jan 2019 16:11
Last Modified: 18 Jan 2019 16:11
Funders: Economic and Social Research Council (grant number RES-060-25-0033), ETPF
URI: http://eureka.sbs.ox.ac.uk/id/eprint/7249

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