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Income Shifting Incentives and Tax Haven Utilization: Evidence from Multinational U.S. Firms

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  • Richardson, Grant
  • Taylor, Grantley

Abstract

This paper examines the association between a series of income shifting incentives including multinationality, transfer pricing aggressiveness, thin capitalization, intangible assets and tax haven utilization. Our empirical analysis is based on a sample of 286 multinational U.S. firms over the 2006–2012 period (2002 firm-years). Our regression results show that multinationality, transfer pricing aggressiveness, thin capitalization and intangible assets are positively associated with tax haven utilization. Our results are consistent based on several robustness checks.

Suggested Citation

  • Richardson, Grant & Taylor, Grantley, 2015. "Income Shifting Incentives and Tax Haven Utilization: Evidence from Multinational U.S. Firms," The International Journal of Accounting, Elsevier, vol. 50(4), pages 458-485.
  • Handle: RePEc:eee:accoun:v:50:y:2015:i:4:p:458-485
    DOI: 10.1016/j.intacc.2015.10.001
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    References listed on IDEAS

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    Cited by:

    1. Ricardo Santos & Samuel Pereira & Elísio Brandão, 2016. "Transfer Pricing Aggressiveness And Financial Derivatives Practices: Empirical Evidences From United Kingdom," FEP Working Papers 583, Universidade do Porto, Faculdade de Economia do Porto.
    2. repec:taf:oabmxx:v:3:y:2016:i:1:p:1248644 is not listed on IDEAS
    3. repec:eee:worbus:v:53:y:2018:i:2:p:177-193 is not listed on IDEAS

    More about this item

    Keywords

    Income shifting; Tax havens; Multinationality; Transfer pricing; Thin capitalization; Intangible assets;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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