Arulampalam, Wiji, Devereux , Michael P. and Liberini, Federica (2017) Taxes and the location of targets. Working Paper. Coventry: University of Warwick. Department of Economics. Warwick economics research papers series (WERPS) (1135).

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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:	Working or Discussion Paper (Working Paper)
Subjects:	H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce
Divisions:	Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH):	Business enterprises -- Taxation, Consolidation and merger of corporations, International business enterprises
Series Name:	Warwick economics research papers series (WERPS)
Publisher:	University of Warwick. Department of Economics
Place of Publication:	Coventry
ISSN:	0083-7350
Official Date:	February 2017
Dates:	Date Event February 2017 Published
Number:	1135
Number of Pages:	47
Institution:	University of Warwick
Status:	Not Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Open Access (Creative Commons)
Funder:	Hundred Group of Finance Directors, European Tax Policy Forum (ETPF), Economic and Social Research Council (Great Britain) (ESRC)
Grant number:	RES-060-25-0033 (ESRC)

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