The Experts below are selected from a list of 203607 Experts worldwide ranked by ideXlab platform
Douglas A Shackelford - One of the best experts on this subject based on the ideXlab platform.
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the effect of tax and nontax country characteristics on the global equity supply chains of u s Multinationals
Journal of Accounting and Economics, 2015Co-Authors: Scott D Dyreng, Kevin Markle, Bradley P Lindsey, Douglas A ShackelfordAbstract:We examine the global equity supply chains of U.S. Multinationals to explore how tax and nontax country characteristics affect whether firms use foreign holding companies and where they locate them. We find that U.S. Multinationals supply equity from headquarters to their foreign operating companies through foreign holding companies located in countries that lightly tax equity distributions. We also find that foreign holding companies tend to be located in countries with less corruption and investment risk than the countries in which the operating companies they own are located. In addition, we provide empirical evidence that the Netherlands, a well-known location for international tax planning, is a particularly popular site for foreign equity holding companies. Our findings contribute to a nascent literature that examines ownership chains in multinational companies and a larger literature on subsidiary location decisions for Multinationals. The findings also provide empirical evidence that could be useful to governments in developed countries as they attempt to reform international tax policy.
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cross country comparisons of corporate income taxes
National Tax Journal, 2011Co-Authors: Kevin Markle, Douglas A ShackelfordAbstract:To our knowledge, this paper provides the most comprehensive analysis of firm-level corporate income taxes to date. We use publicly available financial statement information for 11,602 public corporations from 82 countries from 1988 to 2009 to estimate country-level effective tax rates (ETRs). We find that the location of a multinational and its subsidiaries substantially affects its worldwide ETR. Japanese firms always faced the highest ETRs. U.S. Multinationals are among the highest taxed. Multinationals based in tax havens face the lowest taxes. We find that ETRs have been falling over the last two decades; however, the ordinal rank from high-tax countries to low-tax countries has changed little. We also find little difference between the ETRs of Multinationals and domestic-only firms. Besides enhancing our knowledge about international taxes, these findings should provide some empirical underpinning for ongoing policy debates about the taxation of Multinationals.
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foreign tax credit limitations and preferred stock issuances
Journal of Accounting Research, 1992Co-Authors: Julie H Collins, Douglas A ShackelfordAbstract:This paper documents a consequence of a subset of tax law changes enacted in the Tax Reform Act of 1986 applicable to U.S. multinational corporations. Specifically, we provide evidence that the more stringent interest allocation rules and foreign tax credit limitations enacted in the 1986 Act resulted in the increased use of preferred stock as a financing instrument for U.S. Multinationals. By decreasing the tax-favored status of debt for Multinationals, Congress provided incentives for issuances of an alternative financing instrument, preferred stock. The cost of capital for multinational firms is a function of their total tax burden consisting of both domestic and foreign taxes. The United States taxes the worldwide income of U.S.-based multinational corporations. In addition, U.S. Multinationals pay taxes in foreign jurisdictions based on the tax rules of the foreign governments. The U.S. mitigates, but does not eliminate, multiple taxation of foreign income
Enrique Claver-cortés - One of the best experts on this subject based on the ideXlab platform.
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Relational capital inside Multinationals
Knowledge Management Research & Practice, 2011Co-Authors: Patrocinio Zaragoza-sáez, Enrique Claver-cortésAbstract:Linking the knowledge-based view, the multinational theory and the intellectual capital-based view of the firm, this paper seeks to identify the main activities belonging to the relational capital of Multinationals and the extent to which they contribute to knowledge development and transfer between their different subsidiaries. Six multinational and knowledge-intensive firms placed in Spain have been analysed through a qualitative research based on a multiple case-study. Its findings show the main relational activities that facilitate knowledge flows between the different units of a multinational. These activities are classified into four categories: relational structures (work teams, communities of practices, transnational teams, centres of excellence), tools (information and communication technologies, internal communication and publications), practices (expatriates) and socialisation. Tacit knowledge, as well as the idiosyncratic nature that most of them have, makes the relational capital of the firms studied become a source of competitive advantage.
Kevin Markle - One of the best experts on this subject based on the ideXlab platform.
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a comparison of the tax motivated income shifting of Multinationals in territorial and worldwide countries
Contemporary Accounting Research, 2016Co-Authors: Kevin MarkleAbstract:This paper tests for differences in the tax-motivated income shifting behaviors of Multinationals subject to different systems of taxing foreign earnings. I find that Multinationals subject to territorial tax regimes shift more income than those subject to worldwide tax regimes, but that the difference in shifting is not statistically different when the worldwide firms can defer repatriation of the shifted income. I also find that the difference in shifting is greater when the multinational is cash-constrained in its home country. In additional tests, I find that worldwide firms bear the dead-weight cost of having cash trapped in foreign subsidiaries while territorial firms do not.
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the effect of tax and nontax country characteristics on the global equity supply chains of u s Multinationals
Journal of Accounting and Economics, 2015Co-Authors: Scott D Dyreng, Kevin Markle, Bradley P Lindsey, Douglas A ShackelfordAbstract:We examine the global equity supply chains of U.S. Multinationals to explore how tax and nontax country characteristics affect whether firms use foreign holding companies and where they locate them. We find that U.S. Multinationals supply equity from headquarters to their foreign operating companies through foreign holding companies located in countries that lightly tax equity distributions. We also find that foreign holding companies tend to be located in countries with less corruption and investment risk than the countries in which the operating companies they own are located. In addition, we provide empirical evidence that the Netherlands, a well-known location for international tax planning, is a particularly popular site for foreign equity holding companies. Our findings contribute to a nascent literature that examines ownership chains in multinational companies and a larger literature on subsidiary location decisions for Multinationals. The findings also provide empirical evidence that could be useful to governments in developed countries as they attempt to reform international tax policy.
-
cross country comparisons of corporate income taxes
National Tax Journal, 2011Co-Authors: Kevin Markle, Douglas A ShackelfordAbstract:To our knowledge, this paper provides the most comprehensive analysis of firm-level corporate income taxes to date. We use publicly available financial statement information for 11,602 public corporations from 82 countries from 1988 to 2009 to estimate country-level effective tax rates (ETRs). We find that the location of a multinational and its subsidiaries substantially affects its worldwide ETR. Japanese firms always faced the highest ETRs. U.S. Multinationals are among the highest taxed. Multinationals based in tax havens face the lowest taxes. We find that ETRs have been falling over the last two decades; however, the ordinal rank from high-tax countries to low-tax countries has changed little. We also find little difference between the ETRs of Multinationals and domestic-only firms. Besides enhancing our knowledge about international taxes, these findings should provide some empirical underpinning for ongoing policy debates about the taxation of Multinationals.
Patrocinio Zaragoza-sáez - One of the best experts on this subject based on the ideXlab platform.
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Relational capital inside Multinationals
Knowledge Management Research & Practice, 2011Co-Authors: Patrocinio Zaragoza-sáez, Enrique Claver-cortésAbstract:Linking the knowledge-based view, the multinational theory and the intellectual capital-based view of the firm, this paper seeks to identify the main activities belonging to the relational capital of Multinationals and the extent to which they contribute to knowledge development and transfer between their different subsidiaries. Six multinational and knowledge-intensive firms placed in Spain have been analysed through a qualitative research based on a multiple case-study. Its findings show the main relational activities that facilitate knowledge flows between the different units of a multinational. These activities are classified into four categories: relational structures (work teams, communities of practices, transnational teams, centres of excellence), tools (information and communication technologies, internal communication and publications), practices (expatriates) and socialisation. Tacit knowledge, as well as the idiosyncratic nature that most of them have, makes the relational capital of the firms studied become a source of competitive advantage.
Farid Toubal - One of the best experts on this subject based on the ideXlab platform.
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Production versus distribution-oriented FDI
Review of World Economics, 2013Co-Authors: Jörn Kleinert, Farid ToubalAbstract:The business literature has long recognized the importance of Multinationals’ distribution networks. The empirical analysis of distribution-oriented FDI has, however, received little attention which is at least partly due to the lack of appropriate data. We present a slightly modified version of Helpman et al. (Am Econ Rev 94(1):300–316, 2004 ) that explicitly models the possibility for a multinational firm to export through its wholesale trade affiliate. We analyze the multinational firms’ choice between foreign production and foreign distribution. Our empirical analysis uses different discrete choice models and alternative specifications for several sub-samples of multinational firms. Our results show that the choice between distribution and production-oriented FDI is based on the trade-off between fixed and variable costs.
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Production versus Distribution-oriented FDI
2010Co-Authors: Jörn Kleinert, Farid ToubalAbstract:The business literature has long recognized the importance of Multinationals' distribution networks. The empirical analysis of distribution-oriented FDI has, however, received little attention which is at least partly due to the lack of appropriate data. We present a slightly modified version of Helpman, Melitz, and Yeaple (2004) that explicitly models the possibility for a multinational firm to export through its wholesale trade affiliate. We analyze the multinational firms' choice between foreign production and foreign distribution. Our empirical analysis uses different discrete choice models and alternative specifications for several sub-samples of multinational firms. We consider complex foreign sales strategies and correct for the sample selection bias that arises because we only observe firms that have foreign affiliates. Our results show that the decision between distribution and production-oriented FDI is based on the trade-off between fixed and variable costs
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Spillovers from Multinationals to Heterogeneous Domestic Firms: Evidence from Hungary
The World Economy, 2009Co-Authors: Gábor Békés, Jörn Kleinert, Farid ToubalAbstract:Technological and informational spillovers from multinational firms can be particularly beneficial to domestic firms especially in less developed economies. The technological superiority and management experience of foreign multinational firms yield various opportunities for learning. Yet, the importance of foreign firm's spillovers might vary with respect to the different intensities of the linkage between the multinational and the domestic firm, the differences in firms' absorptive capacity and their ability to face competition. We show using firm-level Hungarian data that positive spillovers from Multinationals depend on the level of productivity and the exporting status of the domestic firm. Larger and more productive firms are more able to reap spillovers from Multinationals than smaller and less productive firms. The export status, in contrast, is of minor importance.