It is well documented that foreign investment inflows are deterred by host taxes. What is less clear, however, is the degree to which these aggregate changes are driven by firm choices at the extensive (whether to invest) or intensive (how much to invest) margins. Further, there is little evidence on the way in which these two margins are affected by firm and home-country characteristics. We contribute by examining firm-level cross-border investments during 2007–2015 into Europe from a broad group of home countries at both investment margins. Similar to the existing single-country studies, we find that taxes operate primarily on the extensive margin. Building on those results, we delve further and find significant variation across firms with small investors from high-tax home countries especially sensitive to host taxation.

有充分证据表明，外国投资流入受到东道国税收的阻碍。然而，不太清楚的是，这些总体变化在多大程度上是由企业在广泛（是否投资）或密集（投资多少）边际上的选择所驱动的。此外，几乎没有证据表明这两个利润率受到公司和母国特征的影响。我们通过研究 2007 年至 2015 年期间从广泛的母国在两个投资边际对欧洲的公司层面的跨境投资做出贡献。与现有的单一国家研究类似，我们发现税收主要在广泛的边际上运作。在这些结果的基础上，我们进一步深入研究并发现，拥有来自高税收母国的小投资者的公司之间存在显着差异，对东道国税收特别敏感。