scholarly journals Can Formula Apportionment Really Prevent Multinational Enterprises from Profit Shifting? The Role of Asset Valuation, Intragroup Debt, and Leases

2014 ◽  
Author(s):  
Dirk Kiesewetter ◽  
Tobias Steigenberger ◽  
Matthias Stier
Keyword(s):  
Multinational Enterprises ◽  
Asset Valuation ◽  
Profit Shifting ◽  
Formula Apportionment

scholarly journals Does withholding tax on interest limit international profit-shifting by FDI?

Equilibrium ◽  
2021 ◽  
Vol 16 (1) ◽  
pp. 11-44
Author(s):  
Anna Białek-Jaworska ◽  
Lyubov Klapkiv
Keyword(s):  
Foreign Trade ◽  
Multinational Enterprises ◽  
Trade Credit ◽  
Value Added ◽  
Profit Shifting ◽  
Panel Model ◽  
Withholding Tax ◽  
The Impact ◽  
The Relationship

Research background: Poland is a significant recipient of intercompany loans as a part of foreign direct investment (FDI) debt instruments reported in the Balance of Payments. Most of them come from the developed West European countries ? Netherlands, Luxembourg, France, Germany, and Belgium. Igan et al. (2020) confirm debt-based FDI inflows to emerging markets had a higher impact on the industries? growth in the pre-crisis period 1998?2007 than after (till 2010). Purpose of the article: We aim to identify withholding tax (WHT) impact on intercorporate loans inflow to Poland and analyse the relationship between trade credit and intercompany loans to assess the importance of the profit-shifting role of FDI after 2010. Methods: To reflect the impact of withholding tax and trade credit on inter-company loans (inward debt-based FDI) in 2011?2017 to Poland, we use Arellano-Bond and random effects panel model estimators. The estimated specification is derived from the knowledge-capital model and includes two types of capital: human and physical. Findings & value added: We show that WHT on interests reduces profit-shifting by multinational companies? intercompany lending to Poland. But intercompany loans are positively related to foreign trade credit. Unlike in the case of total FDI inward to Poland (Cieślik, 2019), we identified that vertically integrated multinational enterprises are more likely to provide loans to Polish firms. This study is the first to confirm that withholding tax of interests reduces international profit-shifting by FDI and to provide evidence on the relation-ship between foreign trade credit and intercompany loans provided by multi-national companies.

scholarly journals Socially Responsible HR in Action: Learning from Corporations Listed on the Dow Jones Sustainability Index World 2018/2019

2021 ◽  
Vol 13 (6) ◽  
pp. 3237
Author(s):  
Pyounggu Baek ◽  
Taesung Kim
Keyword(s):  
Multinational Enterprises ◽  
Corporate Sustainability ◽  
Action Learning ◽  
Socially Responsible ◽  
Sustainability Index ◽  
Responsible Management ◽  
Dow Jones Sustainability Index ◽  
The Individual ◽  
Corporate Social

As ethical management, corporate social responsibility (CSR), and corporate sustainability (CS) are increasingly permeating business discourse, contemplating the role of human resources (HR) in helping organizations with socially responsible management is a proactive acceptance of stakeholders’ expectations while reinforcing the field’s identity and contribution. In response, the we examined the HR policies and practices of 46 multinational enterprises (MNEs) listed on the Dow Jones Sustainability Index (DJSI) World 2018/2019 to add new insights to the literature and inform the HR field on how to move forward with socially responsible HR. Content analysis and inductive conceptualization of the MNEs’ HR activities produced a triangular pyramid for socially responsible HR, constructed with eight major themes at the individual, organizational, and institutional levels. Building on the findings, we suggest implications for practice and research, and conclude with urging the HR community to demonstrate leadership in setting the agendas and facilitating change toward socially responsible management.

scholarly journals Accountability on Sustainability in Central and Eastern Europe: An Empirical Assessment of Sustainability-Related Assurance

2021 ◽  
Vol 24 (3) ◽  
pp. 27-52
Author(s):  
Oleh Pasko ◽  
Inna Balla ◽  
Inna Levytska ◽  
Nataliia Semenyshena
Keyword(s):  
Eastern Europe ◽  
Multinational Enterprises ◽  
Central And Eastern Europe ◽  
Sustainability Reporting ◽  
Provider Type ◽  
Accountability Standards ◽  
Coding Rules ◽  
A Company ◽  
Big Four

The paper explores how companies from Central and Eastern Europe adopt assurance practices to provide accountability for sustainability. Drawing on modified coding rules from prior research, a conventional content analysis of 36 assurance statements companies from nine countries was conducted. The results imply differences in the content of reports, processes, and implementation of the standards. Exclusively large and multinational enterprises from the energy sectors domiciled in Poland and Hungary are a typical portrait of a company from the study’s sample, striving to issue and assure sustainability reporting. Of the nine countries represented in the study, sustainability assurance statements of companies from Poland, Hungary, and Romania tend to excel in terms of quality. The vast majority of assurance providers belong to the Big Four, who use ISAE3000 as opposed to AA1100AS. Yet, irrespective of the assurance provider type, stakeholders are neglected. It is argued that just transferring the experience of financial auditing to the field of sustainability, which, by and large, has taken place, is not an option. Authors state that following this route, we are heading in the wrong direction, and in technical terms, the wider proliferation of AA1100AS and its principles, with greater emphasis on reasonable assurance as opposed to the limited and enhanced role of stakeholders, are vital to get back on track. The paper contributes to the emerging literature on accountability standards and stresses the need to enhance sustainability-related assurance.

scholarly journals The Role of Multinational Enterprises in Achieving Sustainable Development - The Case of Huawei

2019 ◽  
Vol 8 (3) ◽  
pp. 194 ◽  
Author(s):  
Sue Claire Berning
Keyword(s):  
Sustainable Development ◽  
Multinational Enterprises ◽  
Sustainable Development Goals ◽  
Annual Reports ◽  
Published Data ◽  
The Sustainable Development ◽  
Study Approach ◽  
Social Contributions ◽  
Development Goals

The aim of this paper is to investigate the relationship between business and sustainable development, particularly the role of multinational enterprises (MNEs) as possible driving force for achieving sustainability. By following an inductive case study approach and referring to the Sustainable Development Goals (SDGs) of the United Nations, the sustainable undertakings of the Chinese MNE Huawei are explored. Published data on Huawei’s website and online resources like annual reports, news announcements, sustainability and corporate social responsibility reports are used for this purpose. The main findings indicate that Huawei can promote sustainable development internationally on three different levels: (1) products/services, (2) business operations and (3) social contributions. Based on these findings, a systematic framework is derived to help illustrate possible and classify existing MNE’s sustainability activities, as well as the related main stakeholders. This paper is useful for scholars and practitioners alike as it shows the compatibility of success in business with sustainability, as well as the potential of MNEs to contribute to sustainable development.             Keywords: Sustainable Development Goals, business, multinational enterprises, emerging markets

Tax Abuse and Implications for Human Rights in Africa

2019 ◽  
pp. 189-208
Author(s):  
Annet Wanyana Oguttu ◽  
Monica Iyer
Keyword(s):  
Human Rights ◽  
Multinational Enterprises ◽  
Tax Reform ◽  
Tax Avoidance ◽  
International Taxation ◽  
Fair Share ◽  
Profit Shifting ◽  
African Countries ◽  
Tax System ◽  
Development Goals

This chapter analyzes whether the international tax reform measures instituted under the Organisation for Economic Co-operation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) Project are effective in ensuring African countries get a fair share of taxes from multinational enterprises (MNEs) transacting within their borders, so that they can finance their development goals and promote the human rights of their citizens. The OECD chose to focus on curtailing sophisticated tax-avoidance schemes by strengthening existing anti-avoidance provisions. MNEs have abused these existing laws, however, making them largely ineffective. Given that MNEs are always a step ahead in devising new tax-avoidance strategies, one wonders whether emphasis on strengthening anti-avoidance laws will achieve much. The OECD seems to have missed an opportunity to evaluate the whole tax system and deal with the very root of the problems inherent in international taxation.

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