What drives emerging economy firm acquisitions in tax havens?

Chari M., Acikgoz Ş.

Journal of Business Research, cilt.69, sa.2, ss.664-671, 2016 (SSCI) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 69 Sayı: 2
  • Basım Tarihi: 2016
  • Doi Numarası: 10.1016/j.jbusres.2015.08.034
  • Dergi Adı: Journal of Business Research
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.664-671
  • Anahtar Kelimeler: Cross-border acquisitions, Emerging economy firms, Institutional weakness, Internationalization motivations, Tax havens
  • Ankara Hacı Bayram Veli Üniversitesi Adresli: Hayır

Özet

We note that a non-trivial fraction of international acquisitions by emerging economy firms are in tax havens. We argue that such acquisitions are driven by different motivations than the four (market seeking, resource seeking, low cost seeking, and knowledge or strategic asset seeking) identified in the international business literature. Specifically, we argue that such acquisitions are driven by institutional weakness in the home country and lower taxes in the host country. Empirical tests using data on cross border acquisitions by firms from ten emerging economies with the most numbers of cross border acquisitions lend support to our arguments.