We study profitable firms with no tax expenses. We find that the proportion of profitable firms that owe zero taxes (zero-tax firms) has increased substantially over the past 70 years, accounting for almost 15% of listed U.S. firms in recent years. Zero-tax firms thus represent a major group of...

This paper is about firms as an instance of economic coordination, and about how we think about them in relation to other forms of coordination as well as in relation to competition and markets. The dominant frame for thinking about firms--which has strongly influenced contemporary competition...

This article examines the international determinants of capital structure using a large sample of firms drawn from 37 counties. The reliable determinants for leverage are firm size, tangibility, industry leverage, profits, and inflation. The quality of the countries' institutions affects...

Multinational enterprises (MNEs) may use transfer pricing techniques and policies to reduce their tax base in higher-tax rate jurisdictions by shifting it to lower-tax rate countries or tax havens. These practices, enhanced by the globalization and dematerialization of the economy, have...