'Home Sweet Home' versus International Tax Planning: Where Do Multinational Firms Hold Their U.S. Trademarks?
39 Pages Posted: 7 Mar 2017
Date Written: February 24, 2017
This study analyzes whether tax incentives play a role in the geographical allocation of U.S. trademark rights within large multinational enterprises. Considering the S&P 500 firms, we find a strong home country concentration of U.S. trademark ownership. Still, the probability to offshore legal ownership of U.S. trademarks increases with the value of the respective trademark and with the international footprint of the firm. Considering the choice in which country to hold the trademark, host country taxes turn out to have a statistically significant influence. In an additional analysis, we show that our main results also carry over to European multinationals.
Keywords: Trademark, Corporate Tax, Location Choice, Multinational Firm
JEL Classification: H25, H26, H32
Suggested Citation: Suggested Citation