This manuscript develops a model that incorporates income shifting into investments by U.S. multinationals in their foreign subsidiaries. The model demonstrates that, while there is always an incentive to shift income into the U.S. from high foreign tax rate subsidiaries, income shifting out of...

We shed light on whether stock option repricings are in the best interests of shareholders by conducting an event study that uses non-contaminated and timely announcements of stock option repricings by Canadian firms. While U.S. firms publicly disclose their repricings in proxy statements months...

In this study, we shed light on the combined effect of corporate income tax and other government policies on multinational corporations’ (MNCs) strategic location and relocation of intellectual property. Using granular affiliate-level data for worldwide MNCs, we show that the location of...