Resource title

Tax competition: greenfield investment versus mergers and acquisitions

Resource image

image for OpenScout resource :: Tax competition: greenfield investment versus mergers and acquisitions

Resource description

In this paper, we analyze tax competition in a model where investor firms have the choice between two types of investment, greenfield investment and mergers and acquisitions. We show that the coexistence of these two types of investment intensifies tax competition in comparison to the case where there is only greenfield investment. If a specific tax on acquisitions is available, this result changes. Then, tax competition is mitigated compared to the pure greenfield case. The existence of an acquisition tax may even lead to corporate overtaxation.

Resource author

Johannes Becker, Clemens Fuest

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/26292

Resource license

Adapt according to the presented license agreement and reference the original author.