Impact of double taxation treaties on cross-border acquisitions

Authors

  • Catarina Pinto Universidade do Porto
  • Miguel Sousa Universidade do Porto

DOI:

https://doi.org/10.14195/2183-203X_48_2

Keywords:

Double taxation treaties; cross-border acquisitions; takeover bid premiums; foreign direct investment.

Abstract

In order to evaluate the impact of Double Taxation Treaties (DTTs) on the Foreign Direct Investment (FDI), we analysed the impact of a DTT implementation on both the number of cross-border acquisitions and the average value of M&A deals between companies from the countries that signed the DTT. Moreover, the impact of DTTs on the takeover bid premiums is analysed in order to access if companies are willing to pay higher premiums after the DTT is implemented and whether the impact on the premium is immediate or gradual. Overall, our findings lead us to conclude that DTTs effectively promote FDI.

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Published

2019-06-14

Issue

No. 48 (2019)

Section

Articles

License

Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows sharing the work with recognition of authorship and initial publication in Antropologia Portuguesa journal.