Impact of double taxation treaties on cross-border acquisitions

• Type: Article in International Scientific Journal
• Date: 2019

Authors

Pinto, C (Author) Other; Miguel Augusto Sousa (Author) FEP

Journal

Title: Notas Económicas

No. 52

Pages: 39-54

ISSN: 0872-4733

Publisher: Impactum-Journals

Other information

Authenticus ID: P-00Z-39E

DOI: 10.14195/2183-203x_48_2

Abstract (EN): <jats:p>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.</jats:p>

Language: English

Type (Professor's evaluation): Scientific