The Tax Cuts and Jobs Act (TCJA) of 2017 marked a significant change in U.S. domestic and international tax policy, altering incentives for U.S. firms to own foreign assets. We examine the initial response of U.S. firms’ foreign acquisition patterns to the TCJA’s key reform provisions. We...

Intellectual property (IP) box regimes reward ownership of successful technology by imposing a lower tax rate on income derived from the commercialization of IP relative to other sources of business income. Coupled with explicit provisions regarding the eligibility of acquired IP, IP boxes may...

Following a merger or acquisition, a target firm's effective tax rate decreases on average by 3 percentage points. This decline is as high as 8 percentage points when the acquiring firm is tax aggressive. Further, target firm profitability decreases, particularly in the case of targets having a...