Research on the determinants of tax avoidance have relied on tests using GAAP and cash effective tax rates (ETRs) and total and permanent book-tax differences (BTDs). Two new proxies have emerged that overcome documented limitations of these proxies: one, developed by Henry and Sansing (2018),...

Income shifting from high-tax to low-tax jurisdictions is considered a primary method of reducing worldwide tax burdens of multinational firms. Current losses also affect income-shifting incentives. We extend prior approaches by explicitly considering unprofitable affiliates and test whether the...

Prior to 2018, U.S. repatriation taxes motivated companies to retain cash offshore. Using confidential jurisdiction-specific data from the Bureau of Economic Analysis, we find that firms with high tax-induced foreign cash have approximately 3.3 percent higher domestic liabilities relative to...

Do firms balance tax and operating considerations when making investment decisions? We investigate whether income-shifting aggressiveness affects new investments and predict firms that aggressively shift income will choose affiliate-level investments driven less by local investment...

Over the past decade, policymakers, non-profit organizations, and the media have demanded greater transparency by multinational firms regarding their global operations and tax payments. These demands are motivated by the assumption that multinational firms engage in aggressive planning...