International income-shifting regulations: Empirical evidence from Australia and Canada

Leslie G Eldenburg, Joanne Pickering, Wayne W. Yu

Research output: Contribution to journalArticle

7 Citations (Scopus)

Abstract

This study examines market reactions to two different approaches to reduce income shifting in an international setting. The two methods are described and event studies are performed using stock market data from Canada and Australia. Samples of companies from both countries are partitioned into firms predicted to be affected versus unaffected by each country's event. Australia's regulation taxes profits arising in low-tax subsidiaries at Australian rates. Canada's method defines acceptable transfer prices (arm's-length transactions) and describes enforcement and audit policies. We find evidence of stock market reactions on some of the event dates for Australian and Canadian firms affected by these two approaches.

Original languageEnglish (US)
Pages (from-to)285-303
Number of pages19
JournalInternational Journal of Accounting
Volume38
Issue number3
DOIs
StatePublished - Sep 2003

Fingerprint

Income shifting
Tax
Empirical evidence
Canada
Market reaction
Audit
Profit
Event study
Subsidiaries
Stock market
Enforcement
Transfer price
Stock market reaction
Market data

Keywords

  • Australia
  • Canada
  • Income shifting

ASJC Scopus subject areas

  • Accounting

Cite this

International income-shifting regulations : Empirical evidence from Australia and Canada. / Eldenburg, Leslie G; Pickering, Joanne; Yu, Wayne W.

In: International Journal of Accounting, Vol. 38, No. 3, 09.2003, p. 285-303.

Research output: Contribution to journalArticle

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