How does private firm disclosure affect demand for public firm equity? Evidence from the global equity market

We investigate the relationship between private firms’ disclosures and the demand for the equity of their publicly traded peers. Using data on the global movement of portfolio investments in public equity, we find that a 10% increase in private firm disclosure transparency – proxied by the number of disclosed private firms’ financial statement line items – reduces global investors’ demand for public equity by 4.3% or $358 million per investee country-industry. These findings are consistent with private firm disclosures generating negative pecuniary externalities – global investors reallocate their capital away from public firms to more transparent private firms – and less consistent with these disclosures creating positive information externalities that would benefit public firms. Consistent with this interpretation, we find that the reduction in demand for public equity is offset by a comparable increase in capital allocation to more transparent private firms. Using a simulated instruments approach and the staggered implementations of electronic business registers in investee countries in Europe as plausibly exogenous shocks to private firm transparency, we conclude that the negative relationship between private firm disclosures and public equity demand is likely causa

Real Effects of Private Country-by-Country Disclosure

We investigate the effects of mandatory private Country-by-Country Reporting (CbCR) to European tax authorities on multinational firms’ capital and labor investments as well as their organizational structures. We exploit the threshold-based application of this 2016 disclosure rule to conduct difference-in-differences and regression discontinuity tests. We document increases in capital and labor expenditures in Europe, but these effects are more pronounced in countries with preferential tax regimes. Cross-sectional tests and analysis using consolidated financial data provide evidence consistent with multinational firms reallocating capital across Europe to mitigate increased tax enforcement risk, as well as with CbCR hindering capital investment efficiency. We also find evidence consistent with firms responding to CbCR by reducing organizational complexity. Collectively, our results support the conclusion that mandatory private CbCR causes firms to change real investment activities to substantiate their tax avoidance activities in Europe while reducing the appearance of aggressive tax practices

Measuring the Expected Effects of the Global Tax Reform

Over 140 countries agreed on a fundamental corporate tax reform in 2021 to be implemented in 2023 and beyond. To measure its potential effects, we study asset price changes within minutes of the reform announcements. We construct proxies for the reform's costs regarding U.S. companies' tax burdens and countries' public finances. Likely exposed companies exhibit significant negative stock returns. Our lower-bound estimates indicate total shareholder value losses of $112.6 billion one day after the reform announcements. Further, likely exposed countries experience increases in sovereign debt credit risk. Our findings inform the cost-benefit analysis of a historical international tax reform

Clinical impact of MDR1-expression in testicular germ cell cancer

Aim: The multidrug resistance protein 1 (MDR1, P-gp, p-170) is a membrane glycoprotein that acts as an energy-dependent drug efflux pump. In various malignancies its expression is associated with resistance to diverse cytostatic drugs, and therefore predicts resistance to systemic treatment. The aim of this study was to investigate the prognostic value of MDR1 expression in primary tumor tissue to predict necrosis or viable cancer in residual tumor masses after systemic chemotherapy for advanced testicular germ cell cancer. Materials and Methods: Out of 77 patients, histopathological characteristics of primary testicular cancer specimens and retroperitoneal lymph node dissection (RPLND) samples following chemotherapy were available from 72 and all 77 patients, respectively. Moreover, MDR1 expression was determined by immunohistochemistry in 47 primary tumors and corresponding 73 RPLND sections. Results: After chemotherapy and subsequent RPLND, the examination of residual tumor masses revealed that mature teratoma and active viable tumor were predominantly found in patients with non-seminoma (NSGCT; p = 0.048), especially in those with containing mature teratoma (p = 0.001). Moreover, using univariate analysis the expression of MDR1 in the primary testicular tumor predicted viable tumor/teratoma residues in RPLND sections (p = 0.003). However, in multivariate analysis including the tumors’ histological subtype, MDR1 expression alone failed to reach statistical significance as an independent prognostic marker for residual vital tumor (p ≥ 0.16). Conclusions: With the limited number of patients given, the correlation between MDR1 expression in primary testis cancer and active residual retroperitoneal disease after chemotherapy failed to reach statistical significance as in independent marker. Therefore, up to now routine MDR1 staining of testicular germ cell cancer samples should not be performed in clinical practice. However, as there was a clear trend, a larger number of patients suffering from metastatic non-seminomas should be studied, as MDR1 expression might have significant prognostic value in this particular subgroup of patients.Белок 1 множественной лекарств енной устойчив ости (MDR1, P-gp, p-170) – это мембранный гликопротеин, функционирующий как энергозависимый насос. При разл ичных фо рмах опухолей его экспр е ссия связана с устойчив о стью опухоли к различным цитостатикам, что может быть использовано для выбора типа терапии. Цель работы — исследование прогности- ческой значимости экспрессии MDR1 в ткани пе рвичной опухоли для оценки возмо жности раз вития некроза или сохран е ния живых клеток в остаточной ткани опухоли после применения системной химиотерапии на поздних стадиях герминативных опухолей яичка. Материалы и методы: про анализиро ваны гисто патоло гические характ е ристики пе рвично й те стикулярной опухоли и образцов, полученных при иссечении ретроперитонеальных лимфатических узлов (RPLND) после хими отерапии 72 и 77 бол ьных соотве тственно. Экспр ессию MDR1 определяли иммун огист охимич еским методом в 47 образцах первичн ой опухоли и соответствующих 73 ср RPLND. Результаты: после хими отерапии и последующей RPLNDисследовани е оста- точных опухолевых тканей показало, чтозрелая тератома и жизнеспособные опух олевые клетки выяв ляют преимущественно у больных, у которых не была обнаружена семинома (NSGCT; p = 0,048), особенно у так овых , у которых была тератома (p = 0,001). Более того, д анные одно факторного анализа показали, что экспр е ссия MDR1 в ткани пе рвично й те стику лярной опу- холи может служить прогностич еским факт ором сохран ения живых опух олевых клеток срезах RPLND (p = 0,003). О нак о применение мультифакторного анализа, в том числе с учетом гистологического подтипа опухоли, показало, что экспр е ссия MDR1 не имеет самостоятельной прогностической значимости для выявления живых остаточных опух олевых клеток (p 0,16). Выводы: ввиду небольшо йвыборкибольных не выяв лено статистически значимойкорреляции между экспр ессией MDR1 в первичной опухоли яичка и наличием активных резидуальных очагов поражения в ретроперитонеальном пространстве. В т о же время, учитывая выявленную тенденцию, экспрессию MDR1, в качестве возможного прогностич еского марк ера, имеет смысл исследовать именно у больных с метастатическими опухолями, не являющимися семиномой

Tax Competition and Employment

We examine how exposure to international tax competition affects domestic firms’ employment. Consistent with prior work, we find evidence that reductions in foreign tax rates affect the domestic competitive environment via increases in import competition and investment in foreign-owned firms. We posit that these changes in the competitive environment can cause managers to reduce their firms’ employment levels. Consistent with our expectation, we find that relative decreases in foreign tax rates negatively affect total labor compensation at domestic firms ex ante exposed to import competition and competition from foreign-owned peers. The effect of exposure to tax competition is greater for firms more exposed to product market competition and those that are less able to expand investment without also increasing employment levels. Taken together, our results suggest that foreign tax rate changes can affect managers’ domestic employment decisions by changing the domestic competitive environment

The plerion nebula in IC 443: the XMM-Newton view

\xmm ~observations of the X-ray feature 1SAX J0617.1+2221 in the IC443 supernova remnant are reported.We resolve the structure of the nebula into a compact core with a hard spectrum of photon index $\gamma= 1.63^{+0.11}_{-0.10}$ in the 2--10 keV energy range. The nebula also has an extended (\sim 8\arcmin \times 5\arcmin) X-ray halo, much larger than the radio emission extension. The photon index softens, following a linear scaling with distance from the centroid, similar to other known X-ray plerions. The index range is compatible with synchrotron burn-off models. All the observational evidence points toward a confirmation of the plerionic nature of the nebula, as recently suggested by a \ch observation, but with characteristics more similar to "non Crab-like" plerions. We discuss the implications on the synchrotron nebula magnetic field if the $>100$ MeV emission reported by {\it CGRO EGRET} is produced by the synchrotron emission. We also constrain the thermal emission of the central object, arguing that the surface temperature should be around 0.1 keV, although other possible fits cannot be excluded on the base of the \xmm dataComment: 6 pages, 5 figures, accepted for publication in A&A. Color PDF file ftp://astro.estec.esa.nl/pub/sciproj/fbocchin_h2804.pdf. Color PS file http://www.astropa.unipa.it/biblioteca/OAPA_preprints/h2804.ps.g

Librational motion of CO in solid Ar: Raman and IR spectra and quantum simulations

Rovibrational Raman spectra of CO molecules isolated in solid Ar were measured for the 9–30 K temperature range and compared to past and present IR spectra. The fundamental band appears as a triplet-split structure, where the center peak shows completely different response to temperature in the Raman and IR spectroscopies. The peak is sharp and stable in Raman but reversibly broadens beyond recognition in IR upon annealing. The red-shifted, intense line of the triplet is found thermally inert similarly in both spectroscopies. The third line is the weakest, and as concentration dependent, it is assigned to a dimer as before. The CO–H₂O impurity complex is identified as a side band. We employ crystal field and quantum chemical modeling to interpret the disparity between the spectroscopies. The stable and broadening lines are given assignments to double- and singlesubstitution sites, respectively. Thermal excitations are not effective in the former case of angularly tightconfined, deep potential well. In the single-substitutional case, the librational level structure shows up in discriminating between the Raman and IR selection rules. An effectively ΔJ = 0 totally symmetric transition is found for Raman that is uncoupled from lattice phonons and corresponding broadening mechanisms. The low-temperature limit necessitates the use of a fixed lattice approach while the warmer end of the range is best described with an adiabatic, pseudorotating lattice approach