Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
10489161 | Journal of World Business | 2016 | 14 Pages |
Abstract
This paper examines the determinants of a multinational enterprise's (MNEs) decision to set up tax haven subsidiaries. We adapt the firm-specific advantage-country-specific advantage (FSA-CSA) framework and construct a number of empirically testable hypotheses. The analysis is based on a database covering 14,209 MNEs in twelve OECD countries. We find that the variety of capitalism of a MNEs home location and the level of technological intensity has a strong impact on this decision. We also find that the home country corporate tax rate has a minimal impact. This suggests that corporate tax liberalisation is unlikely to deter MNEs from undertaking this activity.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Chris Jones, Yama Temouri,