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Europe > Switzerland

You are looking at 1 - 5 of 5 items for :

  • Type: Journal Issue x
  • Corporate Finance x
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Cover IMF Working Papers
Home or Away? Profit Shifting with Territorial Taxation
Dominika Langenmayr
and
Ms. Li Liu
In 2009, the United Kingdom abolished the taxation of profits earned abroad and introduced a territorial tax system. Under the territorial system, firms have strong incentives to shift profits abroad. Using a difference-in-differences research design, we show that the profitability of UK subsidiaries in low-tax countries increased after the reform compared to subsidiaries of non-UK multinationals in the same countries by an average of 2 percentage points. This increase in profit shifting also leads to increases in measured productivity of the foreign affiliates of UK multinationals of between 5 and 9 percent.
Keywords:
profit shifting; territorial tax system; multinational firms; shifted profit; UK multinational; UK subsidiary; difference-in-differences research design; Total factor productivity; Transnational corporations; Corporate income tax; Income; Wages; Global
Cover IMF Working Papers
Why Are Canadian Banks More Resilient?
Rocco Huang
and
Mr. Lev Ratnovski
This paper explores factors behind Canadian banks' relative resilience in the ongoing credit turmoil. We identify two main causes: a higher share of depository funding (vs. wholesale funding) in liabilities, and a number of regulatory and structural factors in the Canadian market that reduced banks' incentives to take excessive risks. The robust predictive power of the depository funding ratio is confirmed in a multivariate analysis of the performance of 72 largest commercial banks in OECD countries during the turmoil.
Keywords:
WP; bank; capital; price; funding; Banking Crisis; Financial Stability; Early Warning System; Canada; bank capital regulation; A. bank Fundamentals; capital injection; bank performance; balance sheet liquidity; Canadian bank; Financial statements; Stocks; Liquidity; Capital adequacy requirements; Business enterprises; Australia and New Zealand
Cover IMF Working Papers
Complex Ownership Structures and Corporate Valuations
Mr. Luc Laeven
and
Mr. Ross Levine
The bulk of corporate governance theory examines the agency problems that arise from two extreme ownership structures: 100 percent small shareholders or one large, controlling owner combined with small shareholders. In this paper, we question the empirical validity of this dichotomy. In fact, one-third of publicly listed firms in Europe have multiple large owners, and the market value of firms with multiple blockholders differs from firms with a single large owner and from widely-held firms. Moreover, the relationship between corporate valuations and the distribution of cash-flow rights across multiple large owners is consistent with the predictions of recent theoretical models.
Keywords:
WP; cash-flow right; ownership structure; founding firm; cash-flow dispersion; firm c
Cover IMF Working Papers
FDI Spillovers, Financial Markets, and Economic Development
Selin Sayek
,
Laura Alfaro
,
Areendam Chanda
, and
Sebnem Kalemli-Ozcan
This paper examines the role financial markets play in the relationship between foreign direct investment (FDI) and economic development. We model an economy with a continuum of agents indexed by their level of ability. Agents can either work for the foreign company or undertake entrepreneurial activities, which are subject to a fixed cost. Better financial markets allow agents to take advantage of knowledge spillovers from FDI, magnifying the output effects of FDI. Empirically, we show that well-developed financial markets allow significant gains from FDI, while FDI alone plays an ambiguous role in contributing to development.
Keywords:
WP; central bank; economic growth; entrepreneurial activity; financial markets; foreign direct investment; net FDI inflow; FDI enterprise; FDI share; FDI flow; FDI sector; Financial sector; Financial sector development; Stock markets; Foreign corporations; Sub-Saharan Africa; Africa
Cover IMF Survey
IMF Survey, Volume 31, Issue 12
International Monetary Fund. External Relations Dept.
Corporate profitability is a source of uncertainty in a generally positive global market outlook, IMF International Capital Markets Department Head and Counsellor Gerd Häusler said at a June 12 press conference. Summarizing the findings (see charts, pages 194–95) of the IMF’s second Global Financial Stability Report, he noted that “the near-term outlook in mature markets is largely free of imminent threats, mainly because the world economy has recovered and has helped build support also for financial markets.” However, emerging markets in South America have come under recent pressure. This report is designed to “detect fault lines in global financial markets,” and a theme running through this issue is the uncertainty posed by the level and quality of corporate profits.
Keywords:
SV; IMF Treasurer's Department; growth facility; IMF staff country; IMF's website; fund Facility; Collective action clauses; Emerging and frontier financial markets; Corporate sector; Dispute resolution; Sovereign debt restructuring; Global; Asia and Pacific; Africa