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Earnings shocks and tax-motivated income-shifting: evidence from European multinationals

Abstract:

This paper presents a new approach to estimating the existence and magnitude of tax-motivated income shifting within multinational corporations. Existing studies of income shifting use changes in corporate tax rates as a source of identification. In contrast, this paper exploits exogenous earnings shocks at the parent firm and investigates how these shocks propagate across low-tax and high-tax multinational subsidiaries. This approach is implemented using a large panel of European multination...

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Publisher:
Oxford University Centre for Business Taxation
Publication date:
2010-12-01
UUID:
uuid:8df47e2c-938f-4a8e-bafc-b05ab899c38f
Local pid:
oai:eureka.sbs.ox.ac.uk:595
Deposit date:
2011-05-19

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