Repatriation Taxes, Repatriation Strategies and Multinational Financial Policy / Rosanne Altshuler, Harry Grubert.

Format:

Book

Author/Creator:

Altshuler, Rosanne.

Contributor:

National Bureau of Economic Research.

Grubert, Harry.

Series:

Working Paper Series (National Bureau of Economic Research) no. w8144.

NBER working paper series no. w8144

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2001.

Summary:

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 U.S. multinationals to test for the importance of alternative strategies. The evidence is generally consistent with the theory, particularly the strategies using related affiliates.

Notes:

Print version record

March 2001.