Dyreng, Scott D.; Lindsey, Bradley P.; Thornock, Jacob R. - In: Journal of Financial Economics 108 (2013) 3, pp. 751-772
We examine whether Delaware is a domestic tax haven. We find that taxes play an economically important role in determining whether U.S. firms locate subsidiaries in Delaware and that a Delaware-based state tax avoidance strategy lowers state effective tax rates by between 0.7 and 1.1 percentage...