According to the dealing at arm’s length principle, the price of goods transferred or services within MNE groups should be determined by the market forces. The requirement for this, is that the market prices for such goods or services are known or can be determined. However, market prices are...

This study analyzes the impact of tax complexity on the location of tax employees and tax risk. Using a hand-collected dataset of more than 7,500 tax employees from 348 European-listed multinationals, we identify two types of firm-level costs associated with tax complexity-tax employees, and tax...

This paper presents the first analysis of transfer pricing strategies, employing a simulated proxy for the company's marginal tax rate. Application of this sophisticated tax measure allows us to perform a direct comparison of profit shifting to subsidiaries with low statutory tax rates and to...

This paper aims at detecting to what extent existing empirical studies analyzing tax impact on the choice of capital structure within multinational groups suffer from measurement error. In contrast to those studies, which make reference to statutory tax rates, I use to this end simulated...

This study investigates to what extent multinational enterprises appoint managers jointly at the headquarter and a foreign subsidiary (vertical manager interlocks, VMIs) in order to facilitate tax planning. We use a cross-section data set taken from the AMADEUS database to show that VMIs are...

This study investigates to what extent multinational enterprises appoint managers jointly at the headquarter and a foreign subsidiary (vertical manager interlocks, VMIs) in order to facilitate tax planning. We use a cross-section data set taken from the AMADEUS database to show that VMIs are...

This study examines the effect of tax complexity on the market value of publicly traded firms. Using firm-level measures of tax complexity, we find that a one standard deviation increase in tax complexity-comparable in magnitude to the rise following the U.S. Tax Cuts and Jobs Act-is associated...