Corporate Inversions: Going Beyond Tax Incentives

Corporate Inversions: Going Beyond Tax Incentives

Burcin Col, Rose Liao, Stefan Zeume

Series number :

Serial Number: 

Date posted :

November 07 2017

Last revised :

July 09 2019
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  • Inversions • 
  • Tax havens • 
  • Tax avoidance • 
  • Corporate governance • 
  • Cross-border flows

We study tax and non-tax incentives for corporate inversions in a hand-collected dataset of 691 inversions out of 11 home countries into 45 host destinations over the 1996-2013 period.

Even though lower tax rates generally attract inversions, only two in five firms invert into tax havens and two thirds of firms invert into host destinations with lower statutory tax rates than those faced at home. Moreover, firms invert to geographically close destinations with similar governance standards. Using staggered country-pair level policy changes as experiments, we find that host-country governance may explain why not all firms invert.


Real name:
Burcin Col
Pace University
Real name:
Rose Liao
Real name:
Stefan Zeume