Universität zu Köln

Overesch, Michael and Pflitsch, Max (2021). CROSS-BORDER EFFECTS OF A MAJOR TAX REFORM - EVIDENCE FROM THE EUROPEAN STOCK MARKET. Natl. Tax J., 74 (1). S. 75 - 107. CHICAGO: UNIV CHICAGO PRESS. ISSN 1944-7477

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Abstract

We analyze the effects of the major US tax reform of 2017 on European firms. Although foreign firms that are active in the respective country should be directly affected, other foreign firms could also be indirectly affected through competition. With an event study design, we analyze stock market returns in Europe around key dates in the legislative process leading to the Tax Cuts and Jobs Act. We find positive market returns for the European firms that are active in the United States. Moreover, our results suggest an indirect effect through competition. European firms that face strong competition from US firms in their domestic markets exhibit significantly lower returns.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Overesch, Michael UNSPECIFIED UNSPECIFIED UNSPECIFIED Pflitsch, Max UNSPECIFIED UNSPECIFIED UNSPECIFIED
URN:	urn:nbn:de:hbz:38-567651
DOI:	10.1086/712914
Journal or Publication Title:	Natl. Tax J.
Volume:	74
Number:	1
Page Range:	S. 75 - 107
Date:	2021
Publisher:	UNIV CHICAGO PRESS
Place of Publication:	CHICAGO
ISSN:	1944-7477
Language:	English
Faculty:	Unspecified
Divisions:	Unspecified
Subjects:	no entry
Uncontrolled Keywords:	Keywords Language PRICE BEHAVIOR; ELECTION; CREDIT; EVENT; TRUMP; ACT Multiple languages Business, Finance; Economics Multiple languages
URI:	http://kups.ub.uni-koeln.de/id/eprint/56765