Do repatriation tax burdens influence cash holdings of Taiwan’s Multinational Corporations?

  • 張 承祖

Student thesis: Doctoral Thesis


This paper aims to examine whether the tax costs of repatriating foreign earnings influence the cash holdings of Taiwan’s multinational companies Tax issues are expected to be important for multinational firms because repatriating tax burdens tend to be significant for firms with operations abroad Consistent with this prediction I find that Taiwanese firms with greater repatriation tax burdens hold significantly higher levels of cash and cash equivalents Tax incentives may affect the decision on higher foreign cash holdings if increase in foreign cash holdings is a substitute for domestic cash holdings to a firm The result indicates that rising tax burden will induce cash holdings abroad Moreover evidence shows that most of Taiwan’s multinational firms’ domestic business activities are more relevant to the cash accumulation rather than foreign earnings
Date of Award2020
Original languageEnglish
SupervisorPing-Hsun Huang (Supervisor)

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