scholarly journals The Use of Tax Havens by MNEs in Business Clusters: A Cross-country and Firm-level Analysis

2021 ◽  
Vol 6 (4) ◽  
pp. 176-187
Author(s):  
Walid Ghodbane ◽  
Djawad Sangdal ◽  
Hafedh Benabdennebi
Keyword(s):  
International Business ◽  
Firm Age ◽  
Firm Level ◽  
Tax Havens ◽  
Policy Makers ◽  
Knowledge Based ◽  
Business Operations ◽  
Tax Haven ◽  
Cross Country ◽  
Level Analysis

This paper examines the use of tax havens by MNEs located in business clusters versus their non-cluster counterparts. We extend the knowledge-based theory to construct a number of empirical hypotheses that are tested using dichotomous choice models. The firm-level dataset covers 21,389 MNEs from 5 OECD countries during the years 2009-2017. We find evidence that MNEs, who are part of a business cluster use tax haven subsidiaries to a greater extent compared with MNEs, who are not part of a business cluster. This association continues to hold whilst controlling for other important factors that drive tax haven FDI. Additional insights suggest that firm age, size and technological sophistication can impact the magnitude of the correlation between MNEs in business clusters and their tax haven activity. The findings of this paper shed more light on the use of tax havens among MNEs in their international business operations and have important implications for policy makers and managers.

The use of tax havens by MNEs in business clusters: A cross-country and firm-level analysis

2021 ◽  
Vol 2021 (1) ◽  
pp. 14769
Author(s):  
HA PHUONG LUONG ◽  
Chris Michael Jones ◽  
Yama Temouri
Keyword(s):  
Firm Level ◽  
Tax Havens ◽  
Cross Country ◽  
Level Analysis

scholarly journals Economic Forces and Firm Stock Returns Volatility: Role of Firm Features

2019 ◽  
Vol 7 (3) ◽  
pp. 281-302
Author(s):  
Muhammad Saqib Bashir Butt ◽  
Hasniza Mohd Taib
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Stock Market Volatility ◽  
Firm Level ◽  
Macroeconomic Factors ◽  
Policy Makers ◽  
Size Firm ◽  
Different Characteristics ◽  
The Given ◽  
Level Analysis

Stock market volatility is always been a major concern for investors, regulators, policy makers and academicians. Unfortunately, firm level volatility has not been given the due attention. The studies dealing with the firm level volatility are scarce. Moreover, a common assumption of homogenous nature of firms is used in the aggregate stock market analysis, sectoral level analysis and even in a firm level analysis. This homogenous assumption was objected by several researchers and suggested that firms are heterogeneous even in a narrowly defined sector. Furthermore, firms are different from each other because of possessing different characteristics. Based on that firm’s response to macroeconomic changes would not be the same. Hence, the hypothesis testing ignoring this fact could be spurious. This study proposes five categories in which firms can be classified, such as firm age, firm size, firm nature of business, firm trading nature and the sectoral location of the firm. This study proposes to examine the linkages between the macro economic factors and the firm level stock returns volatility considering the given firm features. It is expected from the empirical testing that the macroeconomic factors effect firm stock returns volatility belonging to different firm features differently, both in terms of magnitude and sign.

scholarly journals A firm-level analysis of development banks in Europe

2020 ◽  
Vol 89 (3) ◽  
pp. 61-77
Author(s):  
Marco Frigerio ◽  
Daniela Vandone
Keyword(s):  
Quantitative Information ◽  
Financial Statement ◽  
Current Debate ◽  
Firm Level ◽  
Policy Makers ◽  
Financial Strength ◽  
Financial Profile ◽  
External Sources ◽  
Development Banks ◽  
Level Analysis

Summary: We perform a cross-country firm-level analysis of all development banks headquartered in Europe. The goal is to investigate their financial profile and efficiency characteristics and to shed light on some crucial issues, which may underline their capacity to raise external sources of finance in addition to capital contributions from shareholder governments (e. g. their capital generation and cost efficiency, the quality of their loan portfolio, the composition of their sources of finance). A financial statement analysis of their accounting features is cogent in the light of the relevance attributed by European policy makers to the economic and financial sustainability of development banks, given the key role they have been called to play in the European economy since the 2008 crises. Indeed, although development banks have goals that go beyond profitability, they need to combine their socio-economic goals with conditions of efficiency and profitability, in order to “stand on their own feet” and secure a reasonable level of financial strength and stability. We first map all development banks headquartered in Europe. We then collect financial information within the reference period 2008 – 2018 for the whole population of development banks. We also split the sample according to size, in order to assess their dimensional heterogeneity. This study provides policymakers with quantitative information on the economic and financial profile of contemporary promotional financial institutions, which may be valuable in the current debate on their role and relevance in Europe.

scholarly journals Knowledge Creation, Innovation and Financial Performance of Firms: Evidence from Vietnam

2016 ◽  
Vol 11 (6) ◽  
pp. 95 ◽  
Author(s):  
Thang V. Nguyen ◽  
Anh T. T. Phan ◽  
Mai T. T. Nguyen
Keyword(s):  
Financial Performance ◽  
Knowledge Creation ◽  
Product Innovation ◽  
Organizational Innovation ◽  
Firm Level ◽  
Policy Makers ◽  
Marketing Innovation ◽  
Knowledge Based ◽  
Innovation Product ◽  
Institutional Uncertainty

<p>Drawing on the knowledge-based perspective and Nonaka’s theory of knowledge creation, this study proposes a model linking firms’ knowledge creation, innovation, and financial performance. The model is tested in a sample of 529 Vietnamese firms. The results show that firms’ knowledge creation has significant impacts on three out of four types of innovation, including product innovation, organizational innovation, and marketing innovation.  Product innovation is also found to contribute significantly to the firm’s financial performance. The results improve our understanding of innovation at the firm level under institutional uncertainty and resource-deficiency and provide some important implications for managers and policy makers. </p>

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