scholarly journals Corporate Income Shifting in an Era of Tax Multilateralism: The Impact of Exchange-of-Information Agreements

2021 ◽  
Vol 69 (2) ◽  
pp. 357-389
Author(s):  
Devan Mescall ◽  
Paul Nielsen
Keyword(s):  
Multinational Corporations ◽  
Multinational Enterprises ◽  
Transfer Pricing ◽  
Empirical Studies ◽  
Annual Reports ◽  
Income Shifting ◽  
Exchange Of Information ◽  
Pricing Rules ◽  
Using Data ◽  
The Impact

Using data from the annual reports of over 100,000 subsidiaries of multinational enterprises (MNEs) from 55 countries between 2003 and 2012, the authors of this article investigate the impact of exchange-of-information agreements ("EOI agreements") on tax-motivated income shifting. Transparency created by the signing of EOI agreements is expected to reduce the tax-motivated shifting of income by multinational corporations. Whether such agreements affect the income-shifting behaviour of multinational corporations is an unanswered question. The authors find evidence that, on average, EOI agreements do have an impact on tax-motivated income shifting. Additionally, they find that more advanced, modern EOI agreements are associated with a larger decrease in tax-motivated income shifting compared to the impact of early EOI agreements. This evidence challenges the prevalent assumption in empirical studies that EOI agreements are homogeneous. Supplemental analyses suggest that factors that affect the information asymmetry between MNEs and tax authorities, such as corporations with high levels of intangibles and tax authorities with strong transfer-pricing rules and enforcement, can diminish or enhance the effectiveness of EOI agreements in moderating tax-motivated income shifting. The evidence provided by this study shows that consideration of the tax authorities' information environment and the substance of an EOI agreement is essential when assessing the impact of such an agreement on the tax behaviour of sophisticated taxpayers such as multinational corporations.

scholarly journals TAX MORALITY: EXAMINING THE BEPS DEBATE, WORK OF THE OECD AND ITS IMPACT ON AFRICA

2017 ◽  
Author(s):  
Daniel Godson Olika
Keyword(s):  
Multinational Corporations ◽  
Transfer Pricing ◽  
Tax Rates ◽  
Profit Shifting ◽  
The Public ◽  
Pricing Rules ◽  
Planning Strategies ◽  
International Tax ◽  
Harsh Criticism ◽  
The Impact

International tax issues have never been at the forefront of international politics as they are today. This is due in large part to the realization that the current international tax system in existence allows multinational corporations to plan their taxes in such a way that they will be able to pay little or no taxes at all. They are able to do this through certain loopholes and gaps that currently exist in the system. These loopholes and gaps are seen as creating opportunities for taxpayers who are involved in cross-border activities to aggressively structure their activities to mitigate potential tax exposure or achieve no tax liabilities. They do this by exploiting; the hybrid-mismatch arrangements, shortcomings of the transfer pricing rules in jurisdictions where they operate and shifting profits from countries where their profits are made to countries with low tax rates. Consequently, some multinationals pay as little as five percent in corporate taxes, even as smaller domestic businesses pay up to 30 percent. The result of this activity is what is known as; base erosion and profit-shifting (BEPS) and it has the potential to deprive all countries of significant tax revenues. This rave debate and harsh criticism from the public influenced the intervention of the Organisation for Economic Co-operation and Development (OECD) to start its now famous BEPS Project. The OECD BEPS Project aims to provide governments or tax administrators with clear international solutions for fighting aggressive corporate tax planning strategies that artificially shift profits to locations where they are subjected to more favourable tax treatment. This paper shall address the various strands of the BEPS debate, the OECD BEPS project, the impact of the project in Africa and Nigeria. The next section shall address the various strands of the debate.

scholarly journals Profit shifting in Brazil and the impact of tax havens

2021 ◽  
Vol 32 (85) ◽  
pp. 95-108
Author(s):  
Alex A. T. Rathke
Keyword(s):  
Multinational Enterprises ◽  
Transfer Pricing ◽  
Profit Maximization ◽  
Profit Shifting ◽  
Tax Havens ◽  
Tax Rate ◽  
Pricing Rules ◽  
Robust Least Squares ◽  
High Level ◽  
The Impact

ABSTRACT We investigate tax-induced profit shifting in Brazil and the impact of tax havens on the shifting behavior of firms. Profit shifting research in Brazil is virtually non-existent, although the shifting incentives in Brazil are prominent. Our research fills this gap with evidences in the novel Brazilian context. Profit shifting is a tax-minimization strategy where multinational enterprises perform intra-firm transactions to allocate taxable profits to low-tax locations. Brazil combines a remarking set of profit shifting incentives, especially a high corporate tax rate, extremely complex tax system, and distinguished transfer pricing rules. Further researches may leverage from the shifting incentives in Brazil, since it provides opportunities to investigate additional factors that affect the shifting behavior of firms. We analyze 989 transaction-by-country observations for the period of 2010-2017. Baseline analysis follows the robust least squares approach with controlling covariates. Linear estimate model derives from the conventional Cobb-Douglas production function, to analyze the impact of shifting incentives on profit maximization. We find that Brazilian firms have a high level of intra-firm transactions with related parties located in low-tax countries, especially with tax havens. It represents a strong evidence of profit shifting behavior in Brazilian firms.

scholarly journals Corporate social responsibility through sport: a longitudinal study of the FTSE100 companies

2015 ◽  
Vol 5 (3) ◽  
pp. 218-241 ◽  
Author(s):  
Tom Bason ◽  
Christos Anagnostopoulos
Keyword(s):  
Corporate Social Responsibility ◽  
Longitudinal Study ◽  
Social Responsibility ◽  
Multinational Enterprises ◽  
Stock Exchange ◽  
Empirical Studies ◽  
Annual Reports ◽  
Content Type ◽  
Csr Disclosure ◽  
Corporate Social

Purpose – Under growing public scrutiny of their behaviour, the vast majority of multinational enterprises (MNEs) have been undertaking significant investments through corporate social responsibility (CSR) in order to close legitimacy gaps. The purpose of this paper is to provide a descriptive account of the nature and scope of MNEs’ CSR programmes that have sport at their core. More specifically, the present study addresses the following questions. First, how do Financial Times Stock Exchange (FTSE) 100 firms utilise sport as part of their CSR agendas? Second, how do different industries have different approaches to CSR through sport? And third, can the types of CSR through sport be classified? Design/methodology/approach – Centred on legitimacy theory and exploratory in nature, the study employed a content analysis method, and examined three types of document from each of the FTSE100 firms, namely, annual reports, annual reviews and CSR reports over the ten-year period from 2003 to 2012. In total, 1,473 documents were content analysed, thereby offering a sound representation of CSR disclosure of the FTSE100. Findings – From the analysis, three main streams emerged: “Philanthropy”, “Sponsorships” and “Personnel engagement” with the first showing the smallest growth compared with the other main streams. Findings show the general rise in CSR through sport, thereby demonstrating that the corporate world has practically acknowledged that the sporting context is a powerful vehicle for the employment of CSR. Originality/value – Previous empirical studies have sought to investigate CSR through sport, yet they have generally suffered from sampling limitations which have, in turn, rendered the drawing of reliable conclusions problematic. Particularly, the lack of an explicit focus on longitudinality is a typical limitation, meaning that no conclusions can be made regarding the trend. The study outlined in this paper offers the most comprehensive longitudinal study of CSR through sport to date, and thus contributes to the increasing volume of literature that examines the application of CSR in relation to the sport sector.

scholarly journals The Impact of Tax, Exchange Rate, Tunneling Incentive and Firm Size on Transfer Pricing (Empirical Study of Manufacturing Companies Listed on the Indonesian Stock Exchange for Years2014-2018)

2019 ◽  
Vol 1 (2) ◽  
pp. 149-166
Author(s):  
Felicia Vanessa Wijaya ◽  
Luky Patricia Widianingsih
Keyword(s):  
Exchange Rate ◽  
Firm Size ◽  
Stock Exchange ◽  
Transfer Pricing ◽  
Secondary Data ◽  
Annual Reports ◽  
Manufacturing Companies ◽  
Factors Affecting ◽  
Analysis Technique ◽  
The Impact

Abstract: In the era of globalization, companies are developing into multinational companies that establish branches or subsidiaries in various countries. This globalization has given an impact to increase international transaction. These transactions could lead to transactions with related parties that shows an indication of transfer pricing. Along with the development of globalization, factors affecting transfer pricing are not only derived from taxes, but also from other factors. The purpose of this research is to examine the effect of tax, exchange rate, tunneling incentive, and firm size on transfer pricing. This research used secondary data in the form of annual reports published on the Indonesia Stock Exchange. Population of this research was manufacturing companies for years 2014-2018 and by purposive sampling method, a sample of 19 manufacturing companies was obtained. Analysis technique used on this research was a multiple linear regression using SPSS 23 application. The result shows that tax, tunneling incentive, firm size have significant effect on transfer pricing, while exchange rate does not take any effect on transfer pricing. Adjusted R2 determination coefficient of 32,8% shows transfer pricing is affected by tax, exchange rate, tunneling incentive, and firm size, while remaining 67,2% is affected by other variables outside research model. Keywords: Transfer Pricing; Tax; Exchange Rate; Tunneling Incentive; Firm Size.

Knowledge Transfer within Multinational Corporations

2011 ◽  
pp. 1536-1547
Author(s):  
Parissa Haghirian
Keyword(s):  
Knowledge Transfer ◽  
Multinational Corporations ◽  
Empirical Research ◽  
Empirical Studies ◽  
Transfer Model ◽  
Transfer Of Knowledge ◽  
Cultural Aspects ◽  
Transfer Processes ◽  
Effective Transfer ◽  
The Impact

A growing interest in the various aspects of knowledge transfer within multinational corporations has been evidenced by a recent surge in empirical research. Despite the fact that the number of empirical studies investigating various aspects of knowledge transfer within multinational corporations has significantly increased, very few insights into the influence of culture on knowledge transfer, however, have come to light. In fact, the cultural aspects and the individuals involved in the transfer and communication of corporate knowledge within multinational corporations seemed to have been overlooked by researchers. This chapter attempts to fill this gap and investigates the impact culture has upon knowledge transfer processes within multinational corporations. It presents a comprehensive intercultural knowledge transfer model and identifies which aspects of national culture hinder and which aspects foster an effective transfer of knowledge.

Knowledge Transfer within Multinational Corporations

2010 ◽  
pp. 57-68 ◽  
Author(s):  
Parissa Haghirian
Keyword(s):  
Knowledge Transfer ◽  
Multinational Corporations ◽  
Empirical Research ◽  
Empirical Studies ◽  
Transfer Model ◽  
Transfer Of Knowledge ◽  
Cultural Aspects ◽  
Transfer Processes ◽  
Effective Transfer ◽  
The Impact

A growing interest in the various aspects of knowledge transfer within multinational corporations has been evidenced by a recent surge in empirical research. Despite the fact that the number of empirical studies investigating various aspects of knowledge transfer within multinational corporations has significantly increased, very few insights into the influence of culture on knowledge transfer, however, have come to light. In fact, the cultural aspects and the individuals involved in the transfer and communication of corporate knowledge within multinational corporations seemed to have been overlooked by researchers. This chapter attempts to fill this gap and investigates the impact culture has upon knowledge transfer processes within multinational corporations. It presents a comprehensive intercultural knowledge transfer model and identifies which aspects of national culture hinder and which aspects foster an effective transfer of knowledge.

MANDATORI ROTASI AUDITOR DAN KUALITAS AUDIT DI INDONESIA

2019 ◽  
Vol 5 (2) ◽  
pp. 54-64
Author(s):  
Wahyu Pramesti ◽  
Sayekti Endah Retno Meilani
Keyword(s):  
Audit Quality ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Annual Reports ◽  
Public Accounting ◽  
Accounting Firms ◽  
Public Accounting Firms ◽  
Using Data ◽  
The Impact

The aims of this study is to determine the impact of audit rotation to audit quality in Indonesia. There are two types of audit rotation, first is rotation of public accounting firms and second is rotation of audit partners. This is quantitave research using 876 samples from members of company listing in Indonesia Stock Exchange from 2013 until 2015. Data colletion from annual reports these companies. These data are processes dan raise the regression equation that satisfy the classic assumtion. Using data from all companies listing in Indonesia Stock Exchange for period 2013 – 2015, we obtained te evidance that audit quality in Indonesia be affected by rotation of public accounting firms and rotation of audit partners. The result show that rotation of audit partners has positive impact to audit quality. While negative impact given by rotation of public accounting firm to audit rotation. It means that the higest frequent of rotating audit partners will increase the audit quality. To the contrary, while higest frequent rotation of public accounting firms will decrease the audit quality.

Betriebsräte und Arbeitszufriedenheit / Works Councils and Job Satisfaction

2006 ◽  
Vol 226 (5) ◽  
Author(s):  
Uwe Jirjahn ◽  
Georgi Tsertsvadze
Keyword(s):  
Job Satisfaction ◽  
Empirical Studies ◽  
Systematic Research ◽  
Full Time ◽  
Works Councils ◽  
White Collar Workers ◽  
Using Data ◽  
Works Council ◽  
The Impact ◽  
The Relationship

SummaryEmpirical studies on establishment-level codetermination usually focus on the impact of works councils on firm performance. Using data from the German Socio-Economic Panel, this is the first systematic research to examine the relationship between works councils and job satisfaction. It is shown that the relationship depends on the type of worker. The presence of a works council increases job satisfaction of full-time employed blue-collar workers. In general, councils do not have an influence on full-time employed white-collar workers. However, there is a negative association between works council presence and job satisfaction of managers. Furthermore, the presence of a workers council is associated with lower job satisfaction of non-full-time workers.

Can Infused Publicness Enhance Public Value Creation? Examining the Impact of Government Funding on the Performance of Social Enterprises in South Korea

2020 ◽  
pp. 027507402098325
Author(s):  
Donwe Choi ◽  
Frances S. Berry
Keyword(s):  
South Korea ◽  
Value Creation ◽  
Social Enterprise ◽  
Empirical Studies ◽  
Government Funding ◽  
Social Enterprises ◽  
Annual Reports ◽  
Public Value ◽  
Disadvantaged Community ◽  
The Impact

Numerous countries employ social enterprise as an alternative way of addressing social, economic, and environmental problems, with this new approach steadily gaining strength over the last two decades. Despite this growth, few empirical studies have examined the effects of government policies on social enterprise development. Seeking to fill this gap, this study examines the impact of government funding on the social and economic performance of social enterprises in South Korea, framed by integrative publicness hypotheses. The integrative publicness framework posits that infused publicness by government funding can enhance public value creation. To investigate the impact of government funding on social enterprises, this study has gathered data from annual reports voluntarily published by Korean social enterprises in 2018. Regression was employed to analyze the data. The findings suggest that government funding is positively associated with social enterprise’s employment of the disadvantaged, community contribution, and democratic decision-making. In addition, government funding is related to a decrease in the business profitability of social enterprises, implying that it may lessen their profit-maximization. This study provides policymakers and managers of social enterprises with suggestions on how to measure the outcomes of social enterprises and offers real-world touchstones on how they can improve their creation of public value.

Sign in / Sign up

Export Citation Format

Share Document