Top executives of the parent company often take positions as the directors and officers (D&Os) of subsidiaries. These parent-subsidiary common D&Os have better access to subsidiary information and can exert more influence over subsidiary operations. Therefore they can better identify tax...

One of the most critical decisions top management in corporate groups has to make is the allocation of resources among competing investment opportunities across the group. Information asymmetry between the parent and subsidiaries, however, creates agency conflicts that complicate such...

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 investigates the cost of debt of parent and subsidiary firms on the US corporate bond market. Debt issued by subsidiary firms is economically relevant, as it represents 13% of the total US bond debt. I find that the bonds issued by non-financial subsidiary firms are related, both...

Loss of control in subsidiaries as well as significant influence in associates can be voluntary or otherwise but what is certain is that there are prescribed accounting procedures which must be adhered to as dictated by relevant International Financial Reporting Standards (IFRSs) to ensure that...

Group of companies usually have significant wealth and influence in any given economy and one of the requirements to monitor their activities is through requirement to produce group accounts as dictated by statutory provisions such as the Companies Act and relevant accounting standards. This is...

In a sample of large private Spanish subsidiaries, we find that the magnitude of discretionary accruals is significantly higher when the parent company is foreign than when it is local. Our tests support the thesis of recent research on earnings management strategies within multinational...

U.S. multinational corporations (MNCs) need to allocate decision rights between parent companies and subsidiaries to manage global operations. This paper examines how the allocation of decision rights affects foreign earnings management of MNCs. I find that the extent of foreign earnings...