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Discrete investment and tax competition when firms shift profits

Stöwhase, Sven - Center for European, Governance and Economic … - 2006

In this paper, we model the tax setting game between two revenue maximizing countries which compete for the location of a single production plant owned by a multinational firm. We introduce the possibility that the multinational can shift a fraction of its profits out of the country where the...

Persistent link: https://www.econbiz.de/10010980790

Investor Valuations of Japan's Adoption of a Territorial Tax Regime: Quantifying the Direct and Competitive Effects of International Tax Reform

Dauchy, Estelle P.; Bradley, Sebastien; Hasegawa, Makoto - Center for Economic and Financial Research (CEFIR), New … - 2014

Despite an extensive literature on the normative implications of different international tax regimes and an empirical literature addressing individual specific predictions, there exists little evidence encompassing the broad range of effects of taxing corporations' foreign-source income on a...

Persistent link: https://www.econbiz.de/10010894457

Empirical evaluation of interest barrier effects

Dreßler, Daniel; Scheuering, Uwe - 2015 - This version: July 2015

This paper empirically estimates the effects of a new thin-capitalization rule on the financing behavior of German corporations employing a fixed effects difference-in-difference approach. We compare treatment and control groups separated by a hypothetical application of the new rule in three...

Persistent link: https://www.econbiz.de/10011393141

Reinvested Earnings as a Component of FDI : An Analytical Review of the Determinants of Reinvestment

Lundan, Sarianna M. - 2009

Reinvested earnings represent an important component of foreign direct investment, and the managerial and policy implications of affiliate reinvestment have been neglected in the international business literature, although they have received attention in the economic literature on taxation. This...

Persistent link: https://www.econbiz.de/10013155338

OECD-Led Tax Reforms : A Prescription for a Less Competitive Economy

Gurdgiev, Constantin - 2019

This note reviews May 2019 OECD framework agreement report, “OECD/G20 Inclusive Framework on BEPS: Progress Report July 2018-May 2019” on international taxation of the ‘digital economy'. The core conclusions of the review are:1. The framework agreement proposals to-date represent complex,...

Persistent link: https://www.econbiz.de/10012868220

Tax Influence on Financial Structures of M&As

Harendt, Christoph - 2018

In this paper, I investigate the influence of tax incentives on the financial structures of mergers and acquisitions (M&A) conducted by multinational entities (MNE). Previous research has already found evidence for tax avoidance by debt shifting. I analyze the importance of locating debt at...

Persistent link: https://www.econbiz.de/10012928979

The Effects of Multinationals? Profit Shifting Activities on Real Investments

Overesch, Michael - 2007

This paper investigates whether the size of multinationals? real investments in a high-tax country is affected by profit shifting activities. A simple theoretical analysis shows that tax rates abroad impact the cost of capital in the presence of profit shifting activities of multinational...

Persistent link: https://www.econbiz.de/10010297971

Investment impact of tax loss treatment: Empirical insights from a panel of multinationals

Dreßler, Daniel; Overesch, Michael - 2010

We analyze the impact of tax loss treatment on the size and structure of multinational investments. Basically, two … effects of tax loss treatment can be expected. First, firms make their investment decisions in the face of potential future … losses. Then, the various types of conceivable loss offset provisions affect investment decisions. Secondly, existing loss …

Persistent link: https://www.econbiz.de/10010303806

How low business tax rates attract multinational headquarters: municipality-level evidence from Germany

Becker, Sascha O.; Egger, Peter; Merlo, Valeria - 2009

Most existing empirical evidence on the impact of profit taxation on multinational firm activity is based on cross-country data. One major drawback of such data is that countries differ not only with regard to taxes but along other dimensions which might be hard to capture by means of observable...

Persistent link: https://www.econbiz.de/10010264533

A Practical Proposal to End Corporate Tax Abuse: METR, a Minimum Effective Tax Rate for Multinationals

Cobham, Alex; Faccio, Tommaso; Garcia-Bernardo, Javier; … - 2021

An initiative is needed to break the logjam in the international negotiations to reform taxation of multinational enterprises (MNEs). The explosion of profit shifting observed since the 1990s has resulted in hundreds of billions of dollars of tax revenues being lost around the world each year -...

Persistent link: https://www.econbiz.de/10012695526