The study by Harald Amberger and Leslie Robinson (Tuck School of Business) investigates the effect of the 2017 U.S. Tax Cuts and Jobs Act on the outbound M&A activity of U.S. firms. The results suggest a significant reduction in the foreign acquisitions of U.S. firms (by 3.5 to 4.5 percentage points). Yet, the reform did not alter the M&A activity of non-U.S. firms. The reduction in outbound M&A activity of U.S. firms is driven by the repeal of the U.S. repatriation tax on foreign profits and the adoption of the Global Intangible Low-Tax Income (GILTI) regime.

Open Access Article: https://link.springer.com/content/pdf/10.1007/s11142-023-09760-1.pdf?pdf=button