Repatriation taxes, repatriation strategies and multinational financial policy

• 成果类型: Article; Proceedings Paper
• 署名作者: Altshuler, R; Grubert, H
• 署名单位: Rutgers University System; Rutgers University New Brunswick; United States Department of the Treasury
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(01)00173-6
• 发表日期: 2003
• 页码: 73-107
• 关键词: multinational; international taxation; investment policy; financial policy; dividend repatriation

摘要

Several investment-repatriation strategies are added to the standard model of a multinational in which an affiliate is located in a low-tax country and is limited to two alternatives: repatriating taxable dividends to the parent or investing in its own real operations. In our model, affiliates can invest in passive assets, which the parent can borrow against, or in related affiliates which can be used as vehicles for tax-favored repatriations. We show analytically how the availability of alternative strategies can effect real investment throughout the worldwide corporation. We use firm level data for US multinationals to test for the importance of alternative strategies. The evidence is generally consistent with the theory, particularly the strategies using related affiliates. (C) 2003 Elsevier Science B.V. All rights reserved.