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来源类型 | Working Paper |
规范类型 | 报告 |
DOI | 10.3386/w12649 |
来源ID | Working Paper 12649 |
Why do firms hold so much cash? A tax-based explanation | |
C. Fritz Foley; Jay C. Hartzell; Sheridan Titman; Garry Twite | |
发表日期 | 2006-10-31 |
出版年 | 2006 |
语种 | 英语 |
摘要 | U.S. corporations hold significant amounts of cash on their balance sheets, and these cash holdings have been justified in the existing empirical literature by transaction costs and precautionary motives. An additional explanation, considered in this study, is that U.S. multinational firms hold cash in their foreign subsidiaries because of the tax costs associated with repatriating foreign income. Consistent with this hypothesis, firms that face higher repatriation tax burdens hold higher levels of cash, hold this cash abroad, and hold this cash in affiliates that trigger high tax costs when repatriating earnings. Estimates indicate that a one standard deviation increase in the tax burden from repatriating foreign income is associated with a 7.9% increase in the ratio of cash to net assets. In addition, certain firms, specifically those that are less financially constrained domestically and those that are more technology intensive, exhibit a higher sensitivity of affiliate cash holdings to repatriation tax burdens. |
主题 | International Economics ; International Factor Mobility ; International Finance ; Financial Economics ; Corporate Finance ; Public Economics ; Taxation |
URL | https://www.nber.org/papers/w12649 |
来源智库 | National Bureau of Economic Research (United States) |
引用统计 | |
资源类型 | 智库出版物 |
条目标识符 | http://119.78.100.153/handle/2XGU8XDN/570311 |
推荐引用方式 GB/T 7714 | C. Fritz Foley,Jay C. Hartzell,Sheridan Titman,et al. Why do firms hold so much cash? A tax-based explanation. 2006. |
条目包含的文件 | ||||||
文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
w12649.pdf(145KB) | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 |
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