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We study how foreign competition affects the composition of investments inside firms. A parsimonious model predicts that firms have an incentive to shift their investments towards more short-term assets when exposed to tougher competition. Using data on expenditures of listed US companies into...
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This paper highlights the importance of different investment motives and to what extend they affect the responsiveness … to corporate taxation. In particular, we discuss how to classify investment as non-related, horizontal, vertical and … this, we examine the effects of host-country corporate taxation on the volume of investment within related firms (i.e., the …
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