scholarly journals THE ROLE OF CORRUPTION AND SECRECY IN TAX AVOIDANCE BY MULTINATIONAL FIRMS

2020 ◽  
Author(s):  
Nouf Binhadab
Keyword(s):  
Multinational Firms ◽  
Tax Avoidance

scholarly journals The role of corporate governance in emerging market: Tax avoidance, corporate social responsibility disclosures, risk disclosures, and investment efficiency

2020 ◽  
Vol 9 (3) ◽  
pp. 8-26 ◽  
Author(s):  
Amrie Firmansyah ◽  
Gitty Ajeng Triastie
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Emerging Market ◽  
Tax Avoidance ◽  
Investment Efficiency ◽  
Manufacturing Companies ◽  
Corporate Social ◽  
Risk Disclosures

This study aims to examine the effect of tax avoidance, corporate social responsibility disclosures, and risk disclosures on investment efficiency. This study also examines the role of corporate governance in the association between tax avoidance, corporate social responsibility disclosures, risk disclosures, and investment efficiency. This study uses multiple linear regression with panel data. The sample uses 43 manufacturing companies listed on the Indonesian Securities Exchange from 2014 up to 2017 so that the total sample in this study amounted to 172 firm-years. The result suggests that tax avoidance is negatively associated with investment efficiency. However, corporate social responsibility disclosures and risk disclosures do not affect investment efficiency. Furthermore, another result suggests that corporate governance failed to moderate the effect of tax avoidance on investment efficiency. Besides, corporate governance can weaken the negative influence of corporate social responsibility disclosures on investment efficiency as well as corporate governance drives the negative effect of risk disclosures on investment efficiency.

Performance of Mid-Size Internationalized Indian Firms: Evaluating the Role of Family Control

2019 ◽  
Vol 9 (12) ◽  
pp. 387-400
Author(s):  
Faisal M Ahsan ◽  
Ajay Singal
Keyword(s):  
Multinational Firms ◽  
International Expansion ◽  
Negative Effects ◽  
Family Control ◽  
Listed Firms ◽  
And Performance ◽  
Performance Heterogeneity ◽  
The Impact ◽  
Degree Of Internationalization

The rapidly growing and gradual emergence of multinational firms from the Indian sub-continent now calls for thorough re-understandings of extant theories and existing ideologies of the ‘internationalization’ process. We would initially assess the three-stage model of internationalization in the context of mid-size Indian firms and intend to investigate the relationship between performance and degree of internationalization. Based on the longitudinal dataset (2005-12) of publicly listed firms, our findings suggested that mid-size firms remained stuck up in the first stage of internationalization and accordingly exhibit a downward-sloping relationship between internationalization’s degree and performance. Most of the mid-size firms continued to show a predominantly family-controlled stance, and the impact of family ownership shows negative effects on the degree of internationalization. By examining the performance heterogeneity in family-owned firms towards internationalization, this paper enriches the existing body of research and assume it to be a prolific addition in the literature on international expansion.

scholarly journals Are Less Developed Countries More Exposed to Multinational Tax Avoidance? Method and Evidence from Micro-Data

2019 ◽  
Vol 34 (3) ◽  
pp. 790-809 ◽  
Author(s):  
Niels Johannesen ◽  
Thomas Tørsløv ◽  
Ludvig Wier
Keyword(s):  
Developing Countries ◽  
Multinational Firms ◽  
Tax Avoidance ◽  
Institutional Development ◽  
Developed Countries ◽  
Less Developed Countries ◽  
Tax Rates ◽  
Profit Shifting ◽  
Novel Approach ◽  
Data Requirements

Abstract This paper uses a global dataset with information about 210,000 corporations in 142 countries to investigate whether tax avoidance by multinational firms is more prevalent in less-developed countries. The paper proposes a novel approach to studying cross-border profit shifting, which has relatively low data requirements and is therefore particularly well-suited for the context of developing countries. The results consistently show that the sensitivity of reported profits to profit-shifting incentives is negatively related to the level of economic and institutional development. This may explain why many developing countries opt for low corporate tax rates in spite of urgent revenue needs and severe constraints on the use of other tax bases.

Challenges of Monitoring Tax Compliance by Multinational Firms: Evidence from Chile

2019 ◽  
Vol 109 ◽  
pp. 500-505
Author(s):  
Sebastián Bustos ◽  
Dina Pomeranz ◽  
José Vila-Belda ◽  
Gabriel Zucman
Keyword(s):  
Multinational Firms ◽  
Transfer Pricing ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Tax Rates ◽  
Profit Shifting ◽  
Effective Tax Rates ◽  
Arm’S Length Principle ◽  
Debt Shifting

This paper reviews common challenges of taxing multinational firms, using Chile as a case study. We briefly describe key international tax avoidance methods: profit shifting to low-tax jurisdictions through transfer pricing and debt shifting. We discuss the prevalent policy to tax multinationals--the arm's length principle--and alternative proposals using apportionment formulas. Novel data from Chile show that multinationals make up a large share of GDP but report lower profit and effective tax rates than local firms. In 2011, Chile implemented a reform following OECD guidelines to enforce the arm's length principle. We discuss potential effects on tax collection and welfare.

Do IRS Audits Deter Corporate Tax Avoidance?

2012 ◽  
Vol 87 (5) ◽  
pp. 1603-1639 ◽  
Author(s):  
Jeffrey L. Hoopes ◽  
Devan Mescall ◽  
Jeffrey A. Pittman
Keyword(s):  
Tax Avoidance ◽  
Tax Rates ◽  
Coefficient Estimates ◽  
Corporate Tax ◽  
Effective Tax Rates ◽  
Tax Enforcement ◽  
Public Firms ◽  
Large Samples ◽  
Percentage Points

ABSTRACT We extend research on the determinants of corporate tax avoidance to include the role of Internal Revenue Service (IRS) monitoring. Our evidence from large samples implies that U.S. public firms undertake less aggressive tax positions when tax enforcement is stricter. Reflecting its first-order economic impact on firms, our coefficient estimates imply that raising the probability of an IRS audit from 19 percent (the 25th percentile in our data) to 37 percent (the 75th percentile) increases their cash effective tax rates, on average, by nearly two percentage points, which amounts to a 7 percent increase in cash effective tax rates. These results are robust to controlling for firm size and time, which determine our primary proxy for IRS enforcement, in different ways; specifying several alternative dependent and test variables; and confronting potential endogeneity with instrumental variables and panel data estimations, among other techniques. JEL Classifications: M40; G34; G32; H25.

Six Sigma implementation in Ireland: the role of multinational firms

2010 ◽  
Vol 27 (9) ◽  
pp. 1054-1066 ◽  
Author(s):  
Ton van der Wiele ◽  
Jos van Iwaarden ◽  
David Power
Keyword(s):  
Six Sigma ◽  
Multinational Firms
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