• norsk
    • English
  • norsk 
    • norsk
    • English
  • Logg inn
Vis innførsel 
  •   Hjem
  • Norges Handelshøyskole
  • Department of Business and Management Science
  • Discussion papers (FOR)
  • Vis innførsel
  •   Hjem
  • Norges Handelshøyskole
  • Department of Business and Management Science
  • Discussion papers (FOR)
  • Vis innførsel
JavaScript is disabled for your browser. Some features of this site may not work without it.

Income Shifting under Losses

Hopland, Arnt O.; Lisowsky, Petro; Mardan, Mohammed; Schindler, Dirk
Working paper
Thumbnail
Åpne
2115.pdf (456.5Kb)
Permanent lenke
http://hdl.handle.net/11250/300080
Utgivelsesdato
2015-09-16
Metadata
Vis full innførsel
Samlinger
  • Discussion papers (FOR) [531]
Sammendrag
This paper examines the flexibility of multinational firms to use income-shifting

strategies within a tax year to react to operating losses. We develop a theoretical

model that considers how affiliate losses can be adjusted ex post (i.e., after financial

outcomes are revealed) or ex ante (i.e., before financial outcomes are revealed) by

using transfer prices and internal debt. Our model predicts that under ex-post

income shifting, loss affiliates have lower transfer prices and internal leverage than

profitable affiliates, whereas under ex-ante income shifting, affiliates feature the

same transfer prices and internal capital structure, regardless of making losses.

Using data on direct transfer payments and internal debt of Norwegian affiliates,

we find empirical evidence that, under losses, transfer pricing provides flexibility

to adjust income shifting ex post, while we do not find evidence for flexibility in

the use of internal debt to shift income ex post. Our study extends prior literature

on income shifting that focuses largely on profitable firms and does not consider

transfer pricing and internal debt shifting concurrently.
Utgiver
FOR
Serie
Discussion paper;21/15

Kontakt oss | Gi tilbakemelding

Personvernerklæring
DSpace software copyright © 2002-2019  DuraSpace

Levert av  Unit
 

 

Bla i

Hele arkivetDelarkiv og samlingerUtgivelsesdatoForfattereTitlerEmneordDokumenttyperTidsskrifterDenne samlingenUtgivelsesdatoForfattereTitlerEmneordDokumenttyperTidsskrifter

Min side

Logg inn

Statistikk

Besøksstatistikk

Kontakt oss | Gi tilbakemelding

Personvernerklæring
DSpace software copyright © 2002-2019  DuraSpace

Levert av  Unit