[Translate to English:] D3

The initial effect of U.S. tax reform on foreign acquisitions


Ass.-Prof. Harald Amberger: Publication in Review of Accounting Studies

The study by Harald Amberger and Leslie Robinson (Tuck School of Business) investigates the effect of the 2017 U.S. Tax Cuts and Jobs Act on the outbound M&A activity of U.S. firms. The results suggest a significant reduction in the foreign acquisitions of U.S. firms (by 3.5 to 4.5 percentage points). Yet, the reform did not alter the M&A activity of non-U.S. firms. The reduction in outbound M&A activity of U.S. firms is driven by the repeal of the U.S. repatriation tax on foreign profits and the adoption of the Global Intangible Low-Tax Income (GILTI) regime.

Open Access Article: https://link.springer.com/content/pdf/10.1007/s11142-023-09760-1.pdf?pdf=button