Escape from the USA: Government debt-to-GDP ratio, country tax competitiveness, and US-OECD cross-border M&As

We study how differences in target country-US tax competitiveness influence acquirers’ share price reactions to US cross-border acquisitions, the tax savings after acquisition completion, and the US cross-border acquisition deal flows. We employ two-stage least-squares regressions and use the fitted component of the government debt-to-GDP ratio difference between the US and a target country as a proxy for the target country-US...