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There's No Place Like Home : The Profitability Gap between Headquarters and their Foreign Subsidiaries
Dischinger, Matthias; Riedel, Nadine - 2021
Using a large data set of European firms, this paper provides evidence that operations at multinational headquarters are significantly more profitable than operations at their foreign subsidiaries. The effect turns out to be robust and quantitatively large. Our findings suggest that the...
Persistent link: https://www.econbiz.de/10013316283
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Horizontal versus Vertical Interdependence in Multinational Activity
Badinger, Harald - 2008
Recent research in international economics highlights the role of interdependencies of investment decisions and sales of multinational firms. Previous work focused on and provided evidence for aggregate flows or stocks of foreign direct investment, showing that interdependence declines in...
Persistent link: https://www.econbiz.de/10012771644
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The Impact of Thin Capitalization Rules on the Location of Multinational Firms' Foreign Affiliates
Merlo, Valeria - 2015
This paper examines how restrictions on the tax-deductibility of interest cost affect location choices of multinational corporations (MNCs). Many countries have introduced so-called thin-capitalization rules (TCRs) to prevent MNCs from shifting tax base to countries with lower tax rates. As of...
Persistent link: https://www.econbiz.de/10013018273
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Former Foreign Affiliates : Cast Out and Outperformed?
Javorcik, Beata Smarzynska - 2015
The literature has documented a positive effect of foreign ownership on firm performance. But is this effect due to a one-time knowledge transfer or does it rely on continuous injections of knowledge? To shed light on this question we focus on divestments, that is, foreign affiliates that are...
Persistent link: https://www.econbiz.de/10013030495
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Cross-Border and Foreign Affiliate Sales of Services : Evidence from German Micro-Data
Kelle, Markus - 2012
We merge German balance-of-payments and foreign-affiliate-trade statistics to obtain data about trade in commercial services at the firm level. We use these data to study export market participation and the choice of export mode: cross-border versus foreign affiliate sales. We find that for...
Persistent link: https://www.econbiz.de/10013106910
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Thin Capitalization Rules and Multinational Firm Capital Structure
Blouin, Jennifer - 2014
This paper examines the impact of thin capitalization rules that limit the tax deductibility of interest on the capital structure of the foreign affiliates of US multinationals. We construct a new data set on thin capitalization rules in 54 countries for the period 1982-2004. Using confidential...
Persistent link: https://www.econbiz.de/10013055986
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Debt Financing and Sharp Currency Depreciations : Wholly vs. Partially Owned Multinational Affiliates
Hebous, Shafik; Weichenrieder, Alfons J. - 2021
This paper provides empirical evidence on two potential costs of shared ownership of German affiliates abroad. First, in periods of currency crises, wholly-owned affiliates, in contrast to partially-owned affiliates, seem to circumvent financial constraints by accessing capital from their parent...
Persistent link: https://www.econbiz.de/10013316273
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U.S. Multinationals and Preferential Market Access
Blanchard, Emily J. - 2012
This paper examines the relationship between offshoring activity by U.S. multinational firms and the structure of U …, we find that offshoring multinational activity and preferential market access are positively and consistently correlated …
Persistent link: https://www.econbiz.de/10013104572
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Welfare Policy in the Presence of Unionised Labour and Internationally Mobile Firms
Rocha-Akis, Silvia - 2010
In oligopolistic industries, increased cost saving opportunities via offshoring have a moderating effect on trade … offshoring, and it is only at that level that further economic integration will lead to both wage moderation and offshoring … activities. Therefore, our analysis suggests that rather than provoking a downsizing of the welfare state, offshoring defines an …
Persistent link: https://www.econbiz.de/10013144026
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Green Havens and Pollution Havens
Poelhekke, Steven; van der Ploeg, Rick - 2021
We test for pollution haven effects in outward foreign direct investment (FDI) for different sectors using a comprehensive and exhaustive dataset for outward FDI from the Netherlands, one of the most environmentally stringent countries and a major source of global FDI. Our evidence suggests that...
Persistent link: https://www.econbiz.de/10013315905