An Analysis of the Relative U.S. Tax Burden of U.S. Corporations Having Substantial Foreign Ownership
Year: 2000
Type: article
Abstract: We compare the tax-paying behavior of U.S. firms substantially influenced by foreign-domiciled firms with other U.S. firms. Because public information is lacking on U.S. firms wholly-owned by foreign investors, we concentrate on publicly held firms with "significant," but not 100 percent, foreign ownership. Public financial statements are analyzed rather than Internal Revenue Service data. We find firms with significant foreign ownership pay less tax than other U.S. firms, but find no support for the hypothesis that the reduced tax burden is attributable to income manipulation. Our evidence suggests that foreign investors select U.S. targets that are (or become) less profitable than their industry counterparts.
Source: National Tax Journal
Authors: Michael Kinney, Janice Lawrence
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2268580744