We quantify the net effect of recent U.S. tax reform on the tax rates of public U.S. corporations and find they decreased by 7.5 to 11.4 percentage points on average following tax reform. Further, we separately examine the effect of tax reform on purely domestic firms and multinational firms...

We quantify the immediate net effect of the Tax Cuts and Jobs Act (TCJA) on the tax burden of corporate profits for public US corporations. We find similar reductions in effective tax rates for domestic and multinational firms, yet the entirety of multinational tax savings stemmed from tax...

This paper analyzes stock market reactions to announcements of cross-border M&A deals before and after the ‘Tax Cuts and Jobs Act of 2017’ (TCJA). Prior literature established that the repatriation tax system resulted in agency conflicts and correspondingly low announcement returns due to...

This paper investigates the influence of foreign reinvestment-related and financial reporting incentives on income shifting of U.S. multinational companies. While foreign and domestic policymakers are concerned with the effect of income shifting on dwindling tax revenues, to date no research has...

We investigate the relation among trapped cash, permanently reinvested earnings, and foreign cash. We define trapped cash as cash and cash equivalents generated by foreign earnings and held by U.S. MNC's foreign subsidiaries due to concerns over repatriation taxes, and explain why trapped cash,...

This paper examines income shifting of U.S. multinational companies over the past two decades. Domestic and foreign policymakers are increasingly concerned with the effect of income shifting on dwindling tax revenues, however, extant research on income shifting by U.S. multinational enterprises...

We use data multinational firms provide to the Internal Revenue Service regarding their foreign subsidiary locations to explore whether some firms fail to publicly disclose subsidiaries in some countries, even when the subsidiaries are significant and should be disclosed per Security and...

This paper studies whether tax policies in developed nations affect developing economies through cross-border investments by multinational firms. We study firm investment responses to a major U.K. tax reform that drastically reduced the income tax burden for U.K.-based firms. Our identification...