Journal of Accounting and Economics Vol. 72 No. 2-3 2021
Tax accounting research on corporate investment: A discussion of the impact of IP box regimes on the M&A market by Bradley, Ruf, and Robinson (2021)
Abstract
In The Impact of IP Box Regimes on the M&A Market, Bradley, Robinson, and Ruf (2021) study whether and to what extent tax incentives for intellectual property affect corporate M&A investment activity. The paper finds that a 1.0 percentage point tax benefit leads to a 1.2% increase in M&A activity in a country after the implementation of an Intellectual Property (IP) Box tax regime. Results vary based on country-specific IP Box requirements, as well as firm-specific characteristics such as patent ownership and acquirer nationality. My discussion offers more cautious interpretations of the empirical results related to statutory country-specific requirements of these regimes and raises concerns about the type and timing of firm responses. More generally, I outline how this paper and other work by tax researchers in Accounting contributes to the broader literature studying the relation between corporate tax policies and investment activity.
- DOI
- 10.1016/j.jacceco.2021.101451
- Volume
- 72
- Issue
- 2-3
- Pages
- 101451
- Language
- en
- Sources
- openalex crossref bibtex:phds-export.bib