Centralized vs. de-centralized multinationals and taxes
MetadataShow full item record
- Discussion papers (SAM) 
The paper examines how country tax differences affect a multinational enterprise’s choice to centralize or de-centralize its decision structure. Within a simple model that emphasizes the multiple conflicting roles of transfer prices in MNEs — here, as a strategic pre-commitment device and a tax manipulation instrument —, we show that (de-)centralized decisions are more profitable when tax differentials are (small) large.
PublisherNorwegian School of Economics and Business Administration. Department of Economics