Corporate Taxes and the Location of Intangible Assets Within Multinational Firms

Intangible assets, like patents and trademarks, are increasingly seen as the key to competitive success and as the drivers of corporate profit. Moreover, they constitute a major source of profit shifting opportunities in multinational enterprises (MNEs) due to a highly intransparent transfer pricing process. This paper argues that for both reasons, MNEs have an incentive to locate intangible property at affiliates with a relatively low corporate tax rate. Using panel data on European MNEs and controlling for unobserved time--constant heterogeneity between affiliates, we find that the lower a subsidiary's tax rate relative to other affiliates of the multinational group the higher is its level of intangible asset investment. This effect is statistically and economically significant, even after controlling for subsidiary size and accounting for a dynamic intangible investment pattern

The Role of Headquarters Firms in Multinational Profit Shifting Strategies

This paper stresses the special role of multinational headquarters in corporate profit shifting strategies. Using a large panel of European firms, we show that multinational enterprises (MNEs) are reluctant to shift profits away from their headquarters even if these are located in high-tax countries. Thus, shifting activities in response to corporate tax rate differentials between parents and subsidiaries are found to be significantly larger if the parent observes a lower corporate tax rate than its subsidiary and profit is thus shifted towards the headquarters firm. This result is in line with recent empirical evidence suggesting that MNEs bias the location of profits and highly profitable assets in favor of the headquarters location (for agency cost reasons among others)

Corporate Taxes, Profit Shifting and the Location of Intangibles within Multinational Firms

Intangible assets are one major source of profit shifting opportunities due to a highly intransparent transfer pricing process. Our paper argues that multinational enterprises (MNEs) optimize their profit shifting strategy by locating shifting–relevant intangible property at affiliates with a low statutory corporate tax rate. Using panel data for European MNEs and controlling for unobserved time–constant heterogeneity between affiliates, we find that the lower a subsidiary’s tax rate relative to other affiliates of the multinational group the higher is its level of intangible asset investment. This effect is statistically and economically significant, even after controlling for subsidiary size and accounting for a dynamic intangible investment pattern

There's No Place Like Home: The Profitability Gap between Headquarters and their Foreign Subsidiaries

Using a large panel data set for European firms, this paper provides evidence that operations at multinational headquarters are significantly more profitable than perations at their foreign subsidiaries. The effect turns out to be robust and quantitatively large. Our findings suggest that the profitability gap is partly driven by agency costs which arise if value-driving functions are managed by a subsidiary that is geographically separated from the headquarters management. In line with falling communication and travel costs over the last decade, the profitability gap is shown to decline over time. Apart from that, our results indicate that a higher competitiveness of multinational firms in their home markets also contributes to the profitability gap. We discuss various implications of our findings

Corporate Taxes and the Location of Intangible Assets Within Multinational Firms

Intangible assets, like patents and trademarks, are increasingly seen as the key to competitive success and as the drivers of corporate profit. Moreover, they constitute a major source of profit shifting opportunities in multinational enterprises (MNEs) due to a highly intransparent transfer pricing process. This paper argues that for both reasons, MNEs have an incentive to locate intangible property at affiliates with a relatively low corporate tax rate. Using panel data on European MNEs and controlling for unobserved time--constant heterogeneity between affiliates, we find that the lower a subsidiary's tax rate relative to other affiliates of the multinational group the higher is its level of intangible asset investment. This effect is statistically and economically significant, even after controlling for subsidiary size and accounting for a dynamic intangible investment pattern.multinational enterprise; intangible assets; tax planning; micro level data

There's no Place like Home: The Profitability Gap between Headquarters and their Foreign Subsidiaries

Using a large data set of European firms, this paper provides evidence that operations at multinational headquarters are significantly more profitable than operations at their foreign subsidiaries. The effect turns out to be robust and quantitatively large. Our findings suggest that the profitability gap is partly driven by agency costs which arise if value–driving functions are managed by a subsidiary that is geographically separated from the headquarters management. In line with falling communication and travel costs over the last decade, the profitability gap is shown to decline over time. Apart from that, our results indicate that a higher competitiveness of multinational firms in their home markets also contributes to the profitability gap. We discuss various implications of our findings.profit distribution, multinational enterprise, corporate taxes

Corporate Taxes, Profit Shifting and the Location of Intangibles within Multinational Firms

Intangible assets are one major source of profit shifting opportunities due to a highly intransparent transfer pricing process. Our paper argues that multinational enterprises (MNEs) optimize their profit shifting strategy by locating shifting–relevant intangible property at affiliates with a low statutory corporate tax rate. Using panel data for European MNEs and controlling for unobserved time–constant heterogeneity between affiliates, we find that the lower a subsidiary’s tax rate relative to other affiliates of the multinational group the higher is its level of intangible asset investment. This effect is statistically and economically significant, even after controlling for subsidiary size and accounting for a dynamic intangible investment pattern.corporate taxation; multinational enterprise; profit shifting; intangible assets; micro level data

The Role of Headquarters Firms in Multinational Profit Shifting Strategies

This paper stresses the special role of multinational headquarters in corporate profit shifting strategies. Using a large panel of European firms, we show that multinational enterprises (MNEs) are reluctant to shift profits away from their headquarters even if these are located in high-tax countries. Thus, shifting activities in response to corporate tax rate differentials between parents and subsidiaries are found to be significantly larger if the parent observes a lower corporate tax rate than its subsidiary and profit is thus shifted towards the headquarters firm. This result is in line with recent empirical evidence suggesting that MNEs bias the location of profits and highly profitable assets in favor of the headquarters location (for agency cost reasons among others).multinational firm; profit shifting; headquarters location

Contribution to the knowledge of Ichneumoninae of Siberia and Far East Russia (Hymenoptera, Ichneumonidae)

In dieser Arbeit werden Fundorte von 81 Ichneumoninae aus Sibirien oder Fernost-Russland aufgeführt. 44 von ihnen sind bisher nicht aus diesen Regionen nachgewiesen worden, 25 Arten sind Neunachweise für die gesamte ostpaläarktische Fauna.Elf Arten werden neu beschrieben: Aoplus ocellator spec. nov., Ectopius sibiricus spec. nov., Hoplismenus flagellator spec. nov., Ichneumon brevimaculatus spec. nov., Ichneumon flavocoxalis spec. nov., Ichneumon flavotibialis spec. nov., Ichneumon megextenorius spec. nov., Ichneumon pilocephalus spec. nov., Ichneumon taegeri spec. nov., Monontos baikalensis spec. nov. und Protichneumon nigriventris spec. nov. Außerdem wird eine neue Unterart beschrieben: Chasmias paludator sibiricus subspec. nov.Für Coelichneumon septenus Townes et al., 1965 wird ein neues Weibchen beschrieben. Die Gattung Monontos Uchida wird von den Heresiarchini zu den Ichneumonini transferriert. Nomenklatorische Handlungen Aoplus ocellator spec. nov. – urn:lsid:zoobank.org:act:48A8BD7B-482E-46DB-A330-DD5EEB39DE4CEctopius sibiricus spec. nov. – urn:lsid:zoobank.org:act:AD4C044E-A817-41C5-B24B-83085E159819Hoplismenus flagellator spec. nov. – urn:lsid:zoobank.org:act:675CC203-04A9-4B23-9247-880562A8B0C4Ichneumon brevimaculatus spec. nov. – urn:lsid:zoobank.org:act:32A6E211-9DC7-4E78-A7C4-D7C1FD8F1A6CIchneumon flavocoxalis spec. nov. – urn:lsid:zoobank.org:act: F0B7571F-F53D-4F5E-AEF7-E8E0DEC72F1DIchneumon flavotibialis spec. nov. – urn:lsid:zoobank.org:act:07E8B9DD-3819-4F13-B988-5FAC6CBA25C3Ichneumon megextenorius spec. nov. – urn:lsid:zoobank.org:act:3F921DA4-7285-4328-85AB-C32096485FA8Ichneumon pilocephalus spec. nov. – urn:lsid:zoobank.org:act:FCB03748-C2BF-47B5-9439-397B6E944973Ichneumon taegeri spec. nov. – urn:lsid:zoobank.org:act:2EFB6CDD-10E9-4D81-8639-D8E54F68DC08Monontos baikalensis spec. nov. – urn:lsid:zoobank.org:act:FD6CE0F9-611F-4590-9511-6DBABF35EE9AProtichneumon nigriventris spec. nov. – urn:lsid:zoobank.org:act:98F723A9-B2A8-44D8-B118-83F88FAEAE7EIn this survey, distributional records of 81 Ichneumoninae from Siberia and Far East Russia are given. 44 of them are newly reported from Siberia and/or Far East Russia and 25 species have not been found in the East Palaearctic region before.Eleven species are described as new: Aoplus ocellator spec. nov., Ectopius sibiricus spec. nov., Hoplismenus flagellator spec. nov., Ichneumon brevimaculatus spec. nov., Ichneumon flavocoxalis spec. nov., Ichneumon flavotibialis spec. nov., Ichneumon megextenorius spec. nov., Ichneumon pilocephalus spec. nov., Ichneumon taegeri spec. nov., Monontos baikalensis spec. nov. and Protichneumon nigriventris spec. nov. One taxon is described as a new subspecies: Chasmias paludator sibiricus subspec. nov.For Coelichneumon septenus Townes et al., 1965 a new female is described. The genus Monontos Uchida is transferred from the tribe Heresiarchini to the Ichneumonini. Nomenclatural acts Aoplus ocellator spec. nov. – urn:lsid:zoobank.org:act:48A8BD7B-482E-46DB-A330-DD5EEB39DE4CEctopius sibiricus spec. nov. – urn:lsid:zoobank.org:act:AD4C044E-A817-41C5-B24B-83085E159819Hoplismenus flagellator spec. nov. – urn:lsid:zoobank.org:act:675CC203-04A9-4B23-9247-880562A8B0C4Ichneumon brevimaculatus spec. nov. – urn:lsid:zoobank.org:act:32A6E211-9DC7-4E78-A7C4-D7C1FD8F1A6CIchneumon flavocoxalis spec. nov. – urn:lsid:zoobank.org:act: F0B7571F-F53D-4F5E-AEF7-E8E0DEC72F1DIchneumon flavotibialis spec. nov. – urn:lsid:zoobank.org:act:07E8B9DD-3819-4F13-B988-5FAC6CBA25C3Ichneumon megextenorius spec. nov. – urn:lsid:zoobank.org:act:3F921DA4-7285-4328-85AB-C32096485FA8Ichneumon pilocephalus spec. nov. – urn:lsid:zoobank.org:act:FCB03748-C2BF-47B5-9439-397B6E944973Ichneumon taegeri spec. nov. – urn:lsid:zoobank.org:act:2EFB6CDD-10E9-4D81-8639-D8E54F68DC08Monontos baikalensis spec. nov. – urn:lsid:zoobank.org:act:FD6CE0F9-611F-4590-9511-6DBABF35EE9AProtichneumon nigriventris spec. nov. – urn:lsid:zoobank.org:act:98F723A9-B2A8-44D8-B118-83F88FAEAE7