U.S. worldwide taxation and domestic mergers and acquisitions Jeremiah Harris, William O'Brien
By: Harris, Jeremiah
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Contributor(s): O'Brien, William.
Material type: 
ArticlePublisher: 2018Subject(s): POLITICA FISCAL | EMPRESAS | CONCENTRACION | ESTADOS UNIDOS | MODELOS ECONOMETRICOS
In:
Journal of Accounting and Economics v. 66, Issue 2-3, November- December 2018, p. 419-438 Summary: This study shows that domestic mergers and acquisitions (M&A) were inhibited by the U.S.’s worldwide tax policy on foreign-earned income. Double Irish structures, a complex web of subsidiaries that reduce foreign tax rates and therefore increase potential repatriation tax rates, are associated with lower levels of domestic M&A by U.S. firms. These results do not reflect a continuation of prior trends or declines in worldwide acquisitiveness and are robust to several econometric approaches. We suggest that the Double Irish variable mitigates a confounding effect in an alternative tax variable that clouds inferences in tests of repatriation taxes and domestic M&A.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Recursos electrónicos | IEF | IEF | OP 1441/2018/66/2/3-1 (Browse shelf) | Available | OP 1441/2018/66/2/3-1 |
Disponible únicamente en formato PDF en el repositorio de la Biblioteca del IEF con el nombre: 1441-2018-2-3HAR.
Resumen.
Bibliografía.
This study shows that domestic mergers and acquisitions (M&A) were inhibited by the U.S.’s worldwide tax policy on foreign-earned income. Double Irish structures, a complex web of subsidiaries that reduce foreign tax rates and therefore increase potential repatriation tax rates, are associated with lower levels of domestic M&A by U.S. firms. These results do not reflect a continuation of prior trends or declines in worldwide acquisitiveness and are robust to several econometric approaches. We suggest that the Double Irish variable mitigates a confounding effect in an alternative tax variable that clouds inferences in tests of repatriation taxes and domestic M&A.
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