| Tittel: | Firm Performance Following Foreign Acquisitions in Norway: Evidence of Profit Shifting? | | Ansvar: | Julia Tropina Bakke | | Forfatter: | Bakke, Julia Tropina  | | Materialtype: | Artikkel - elektronisk | | Signatur: | Nordic tax journal | | Utgitt: | Stockholm : Nordic Tax Research Council, 2023 | | Omfang: | 20 sider | | ISBN/ISSN: | 2246-1809 | | Serie: | Nordic Tax Journal ; 1/2023 | | Emneord: | Internprising / Selskapsrett / Skatterett | | Geografiske emneord: | Finland | | Note: | Open access, Attribution 4.0 International (CC BY 4.0)
Utgis av Sciendo. Artikkelen er registrert Ahead of Print 14. juli 2022. | | Innhold: | Abstract:
The paper examines what happened to the prof-itability of foreign-acquired firms following acquisition inNorway in the period 1994–2005. Propensity score match-ing combined with a difference-in-difference estimator isused to show that the profitability of the firms acquired goesdown significantly following the acquisition. Cost elements,driving the lower profitability of the foreign-acquired firms,are the elements that could reflect transfer price manipu-lations. Furthermore, the results indicate that despite de-teriorating financial performance, there is no significantchange in the operating efficiency, liquidity, or solvencyof the acquired firms. This may indicate that the observedchanges in profitability can be explained by profit shiftingactivities of the acquired firms.
Keywords: Profit shifting, transfer pricing, multinationalcompanies, propensity score matching. |
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