Abstract

http://ssrn.com/abstract=1389731
 
 

References (53)



 
 

Citations (18)



 


 



Real Effects of Accounting Rules: Evidence from Multinational Firms’ Investment Location and Profit Repatriation Decisions


John R. Graham


Duke University; National Bureau of Economic Research (NBER)

Michelle Hanlon


Massachusetts Institute of Technology (MIT) - Sloan School of Management

Terry J. Shevlin


University of California-Irvine

August 20, 2010


Abstract:     
We analyze survey responses from nearly 600 tax executives to better understand corporate decisions about real investment location and profit repatriation. Our evidence indicates that avoiding financial accounting income tax expense is as important as avoiding cash taxes when corporations decide where to locate operations and whether to repatriate foreign earnings. This result is important in light of the recent research about whether financial accounting affects investment and in light of the decades of research on foreign investment that examines the role of cash taxes but heretofore has not investigated the importance of financial reporting effects. Our analysis suggests that financial reporting is an important factor to be considered in the policy debates focused on bringing investment to the U.S.

Number of Pages in PDF File: 59

Keywords: Investment, Reinvestment, Repatriation, Tax Expense, Multinational, Tax Policy, Tax Stimulus, Tax Reform

JEL Classification: M40, H20, H25

working papers series





Download This Paper

Date posted: April 17, 2009 ; Last revised: September 1, 2010

Suggested Citation

Graham, John R. and Hanlon, Michelle and Shevlin, Terry J., Real Effects of Accounting Rules: Evidence from Multinational Firms’ Investment Location and Profit Repatriation Decisions (August 20, 2010). Available at SSRN: http://ssrn.com/abstract=1389731 or http://dx.doi.org/10.2139/ssrn.1389731

Contact Information

John Robert Graham
Duke University ( email )
Box 90120
Durham, NC 27708-0120
United States
919-660-7857 (Phone)
919-660-8030 (Fax)
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Michelle Hanlon (Contact Author)
Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )
77 Massachusetts Ave.
E62-416
Cambridge, MA 02142
United States
617-253-9849 (Phone)
Terry J. Shevlin
University of California-Irvine ( email )
Paul Merage School of Business
Irvine, CA 92697-3125
United States
206-550-9891 (Phone)
Feedback to SSRN


Paper statistics
Abstract Views: 2,079
Downloads: 500
Download Rank: 31,718
References:  53
Citations:  18

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo4 in 0.282 seconds