Advanced Search
MyIDEAS: Login

How Firms' Foreign Tax Credit Limitation Affects the Amount of Foreign Assets Deployed

Contents:

Author Info

  • B. Anthony Billings

    (Wayne State University)

  • Mbodja Mougoué

    (Wayne State University)

  • Buagu Musazi

    (Morgan State University)

Registered author(s):

    Abstract

    There is a paucity of research evidence regarding the likely long-term economic consequences of firms' foreign tax credit (FTC) status on asset deployment between the United States and foreign locations. The existing literature primarily focuses on income, not asset, shifting with respect to FTC status. The authors empirically show that after allowing for adjustment costs through Tobin's quotient, assets shift in a direction opposite to the traditional income shift for U.S. multinational corporations with prolonged binding FTC limitation. Regression results for approximately 261 U.S. multinational corporations with various years of missing data for the 1997 through 2003 period indicate that the amount of foreign asset allotment is an increasing function of the duration of firms' FTC limitation spell (cumulative number of the sampled years the firm is FTC limited) for firms in or greater than equilibrium Tobin's quotient.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://pfr.sagepub.com/content/37/2/170.abstract
    Download Restriction: no

    Bibliographic Info

    Article provided by in its journal Public Finance Review.

    Volume (Year): 37 (2009)
    Issue (Month): 2 (March)
    Pages: 170-197

    as in new window
    Handle: RePEc:sae:pubfin:v:37:y:2009:i:2:p:170-197

    Contact details of provider:

    Related research

    Keywords: adjustment costs; multinational; foreign tax credit; foreign-sourced income; exports;

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:37:y:2009:i:2:p:170-197. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.