Overseas dividend remittance is an important vehicle for multinational corporations (MNCs) to move funds among their global subsidiaries. Concerns that residence-based (e.g., U.S.) and territorial (e.g., European countries) tax systems distort dividend repatriations decisions have led countries...

This study examines whether firms' advantage from lower explicit taxes (tax management) is mitigated by lower pre-tax incomes (implicit taxes) and whether this advantage creates sustainable competitive advantage. We investigate a sample of firms with low explicit tax rates prior to the enactment...

This paper investigates whether an increase in the R&D tax credit rate stimulates firms’ incremental R&D spending, and whether firms plan their R&D spending to take advantage of additional tax credits for incremental R&D spending. We find that the increase in the credit rate has a positive...

As a direct response to the recent trend in corporate expatriations, politicians have questioned the patriotism of firms that reorganize outside the U.S. and introduced numerous legislative proposals designed to prevent corporate expatriations. The implicit assumption made in proposing this...