This study aims to investigate the effect of transfer pricing and tax incentive from tax haven countries on the possibility of cross-border company acquisition. This study examines the acquisition activities in Asia in the period of 2012–2014. By using a sample of non-financial companies with a total of 1562 observations, this study shows that transfer pricing affects the probability of the company to do a cross-border acquisition. This study also indicates that the probability of companies performing cross-border acquisition is smaller if the target company is located in a tax haven country.
|Number of pages||9|
|Journal||International Journal of Trade and Global Markets|
|Publication status||Published - 14 Feb 2022|
- Cross-border acquisition
- Tax avoidance
- Tax haven
- Transfer pricing