The influence of corporate income taxes on investment location: Evidence from corporate headquarters relocations

• Main Authors: CHOW, Travis K., HUANG, Sterling, KLASSEN, Kenneth, NG, Jeffrey
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2018
• Subjects: Headquarter Relocation; Corporate Tax; Income Apportionment Formula; Tax Planning; Accounting; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/1868; https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=2895&context=soa_research
• Institution: Singapore Management University

This study examines the specific effects of jurisdictions’ corporate tax policies on firms’ corporate headquarters location decisions. For identification, we rely on changes in state corporate income tax rates across time and states. On average, a 1% reduction in rate is associated with a reduction...