The Resource Corporate taxes and the location of intangible assets within firms

Corporate taxes and the location of intangible assets within firms

Label
Corporate taxes and the location of intangible assets within firms
Title
Corporate taxes and the location of intangible assets within firms
Creator
Subject
Language
eng
Summary
Intangible assets, like patents and trademarks, are increasingly seen as the key to competitive success and as the drivers of corporate profit. Moreover, they constitute a major source of profit shifting opportunities in multinational enterprises (MNEs) due to a highly intransparent transfer pricing process. This paper argues that for both reasons, MNEs have an incentive to locate intangible property at affiliates with a relatively low corporate tax rate. Using panel data on European MNEs and controlling for unobserved time-constant heterogeneity between affiliates, the authors find that the lower a subsidiary's tax rate relative to other affiliates of the multinational group the higher is its level of intangible asset investment. This effect is statistically and economically significant, even after controlling for subsidiary size and accounting for a dynamic intangible investment pattern
Citation source
In: Journal of public economics. - Amsterdam. - Vol. 95 (2011), no. 7 ; p. 691-707
http://library.link/vocab/creatorName
  • Dischinger, M
  • Riedel, N
Geographic coverage
International
Language note
English
http://library.link/vocab/subjectName
  • MNE
  • R&D
  • tax incentive
  • intangibles
  • corporate income tax
  • profit shifting
Label
Corporate taxes and the location of intangible assets within firms
Instantiates
Publication
Label
Corporate taxes and the location of intangible assets within firms
Publication

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