Arulampalam, Wiji, Michael P. Devereux and Federica Liberini
Journal of Public Economics 176, 161-178. 
We use firm-level data to investigate the impact of taxes on the international location of targets in M&A, allowing for domestic acquisitions and 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.
Multinational enterprisesCross-border expansionTarget choiceCorporation income taxMixed logit