International taxation and the direction and volume of cross-border M&As

H.P. Huizinga, J. Voget

Research output: Contribution to journalArticleScientificpeer-review

100 Citations (Scopus)


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%.
Original languageEnglish
Pages (from-to)1217-1249
JournalJournal of Finance
Issue number3
Publication statusPublished - 2009


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