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
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Published as Altshuler, Rosanne and Harry Grubert. "Repatriation Taxes, Repatriation Strategies And Multinational Financial Policy," Journal of Public Economics, 2003, v87(1,Jan), 73-107.

Downloads: (external link)
http://www.nber.org/papers/w8144.pdf (application/pdf)

Related works:
Journal Article: Repatriation taxes, repatriation strategies and multinational financial policy (2003)
Working Paper: Repatriation Taxes, Repatriation Strategies and Multinational Financial Policy (2002)
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: https://EconPapers.repec.org/RePEc:nbr:nberwo:8144

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w8144

Access Statistics for this paper

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