Disaggregating the Corporate Headquarters: Investor Reactions to Inversion Announcements by US Firms

Internationally disaggregated headquarters arise from cross‐border relocations of headquarters components. To shed more light on the business consequences of such component relocations, we analyse stock market reactions to inversion initiatives, which are plans by US firms to offshore their registered seat. Combining business economics and institutional theory, we develop an explanatory framework centred on repatriation taxes on foreign income....