Repatriation Taxes, Repatriation Strategies and Multinational Financial Policy

Rosanne Altshuler () and Harry Grubert

No 8144, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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.

JEL-codes: H25 H87 (search for similar items in EconPapers)
Date: 2001-03
Note: PE
View list of references View citations in EconPapers

Downloads: (external link)
http://www.nber.org/papers/w8144.pdf (application/pdf)
Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html.

Related works:
Working Paper: Repatriation Taxes, Repatriation Strategies and Multinational Financial Policy (2002)
Journal Article: Repatriation taxes, repatriation strategies and multinational financial policy (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:nbr:nberwo:8144

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w8144
The price is Paper copy available by mail.

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc
Address: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Contact information at EDIRC.
Series data maintained by ().