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The rise in foreign direct investment and the increasing activity of multinational firms expose national corporate tax bases to cross-country profit shifting, but also lead to rising profitability of the corporate sector. We incorporate these two effects of economic integration into a simple...
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This volume of Research in Global Strategic Management, the first under the new editorship of William Newburry …. By focusing on the role and the management of subsidiaries, the volume complements recent research on MNC headquarters …. Contributions can be grouped into three categories: the management mechanisms of the MNC; tensions and conflicts in HQ …
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Many subsidiaries can deduct interest payments on internal debt from their taxable income. By issuing internal debt from a tax haven, multinationals can shift income out of host countries through the interest rates they charge and the amount of internal debt they issue. We show that, from a...
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