返回Google圖書搜尋

Talk Softly But Carry a Big Stick

Lorraine EdenDan LiLuis Felipe Juarez-Valdes

其他書名	Transfer Pricing Penalties and the Marekt Valuation of Japanese Multinationals in the United States
出版	SSRN, 2011
URL	http://books.google.com.hk/books?id=QoTgzwEACAAJ&hl=&source=gbs_api

註釋Corporate income tax law in OECD countries requires multinational enterprises (MNEs) to set their transfer prices according to the arm's length standard. In 1990, the US government introduced a transfer pricing penalty for cases where MNEs deviated substantially from this standard. Most OECD governments have followed with their own penalty legislation. This paper investigates the theoretical and empirical effects of transfer pricing penalties on the behavior and profits of multinationals. Event study methodology is used to analyze the effects of the US penalty legislation on the stock market valuation of Japanese MNEs with US subsidiaries. We find that even the threat of the penalty negatively affected market valuation.