Resource title

Centralized vs. De-centralized Multinationals and Taxes

Resource image

image for OpenScout resource :: Centralized vs. De-centralized Multinationals and Taxes

Resource description

The paper examines how country tax differences affect a multinational enterprise's choice to centralize or de-centralize its decision structure. Within a simple model that emphasizes the multiple conflicting roles of transfer prices in MNEs – here, as a strategic pre-commitment device and a tax manipulation instrument –, we show that (de-)centralized decisions are more profitable when tax differentials are (small) large.Keywords: Centralized vs. de-centralized decisions, taxes, MNEs.JEL-Classification: H25, F23, L23.

Resource author

Søren Bo Nielsen, Pascalis Raimondos-Møller, Guttorm Schjelderup

Resource publisher

Resource publish date

Resource language

eng

Resource content type

application/pdf

Resource resource URL

http://hdl.handle.net/10398/7652

Resource license

Check the according license before adaptation. When adapting give credits to the original author.