Corporate inversion, one of the tax strategy in U.S. that firms use for changing the corporation country to lower corporate tax rate country for tax purpose. In the present time, corporate inversion still contains the question of the practical use to both company and shareholders. This study, I use difference in difference model to evaluate the effect of inversion on the company with the effective tax rate by including the main factors of the effective tax rate, and event study by separate country to each tax type: pure tax haven, strategic tax haven and others, to see the effect to the stock price. I show that inversion has the significant effect on the tax payment and the inversion could have an effect to the stock price multiple way by possibly depends on the country, the corporate governance which base on the country, and year, which might have some event on it, that the inversion happens to.
Do corporate inversions create value?
Post by MSF Chula at Monday, 24 December 2018 11:48 AM
Last updated at Monday, 24 December 2018 11:48 AM