Territorial tax system reform and the financial behavior of multinational firms

• Main Authors: XING, Jing, BOND, Stephen, MAFFINI, Giorgia
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2016
• Subjects: Accounting; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/soe_research/2391; https://ink.library.smu.edu.sg/context/soe_research/article/3386/viewcontent/SSRN_id2858438.pdf
• Institution: Singapore Management University

We investigate whether the move from the worldwide tax system to the territorial tax system in Japan in 2009 affects the financial behavior of overseas affiliates of Japanese multinational companies. The reform substantially reduces the tax costs of profit repatriation in the form of dividends for J...