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This paper analyzes the effect of corporate tax cuts on the competitiveness of the tax-cutting countries and neighbor countries.

This study utilizes four significant corporate tax reforms among the OECD countries in Europe that offer a one-time tax cut of 6% or more. The short-term event study approach examines the stock index reactions for both the tax-cutting countries and the other countries. Multivariate fixed-effect regressions are employed to study the cross-sectional variations in the non-tax-cut countries.

This paper finds positive excess returns for Slovakia and Germany around the tax-cut passage. Multivariate analysis of stock market reactions of the non-tax-cutting countries reveals some evidence supporting both the positive spillover effect and the negative competitive loss effect. More advanced countries are more likely to experience higher abnormal returns, while higher tax countries are more likely to suffer lower abnormal returns. Other factors identified that might have influenced the effect of a foreign tax cut include the existing trade flows with the tax-cutting countries, whether the country has a common currency and the export orientation of the economy.

The findings are subject to sample-size issues. The lack of results for the other two countries is due to complicating events, as suggested by the further investigation of concurrent news events around the event days.

The simultaneous analysis of the reform countries and the other countries in the region suggests that policymakers need to consider the relative positioning of their country vs the other countries in terms of economic development and current tax burdens when determining the optimal policy for their country or to respond to the tax policy changes in the other countries.

This study offers empirical evidence regarding the effect of corporate tax changes on competitiveness through the lens of stock markets' reactions, which depend on the net results of the spillover gain vs the competitive loss.

This paper aims to hypothesize on the relationship between the Millennial workforce and US firms’ response to the Tax Cuts and Jobs Act (TCJA) of 2017. The authors postulate that societal pressure from the younger generational cohorts will motivate socially cognizant corporations to share their newly acquired tax benefits with their workforce to attract, retain and inspire employee productivity and retention, as well as customer loyalty.

The authors empirically examine work-related cultural attitudes of the Millennial generational cohort in the USA, and by exploring related literature on organizational management and supply side economics, the authors aim to connect them to firms’ response to tax cut windfall in a simple theoretical model. The authors complement their methods by using descriptive statistics on firm tax responses that followed the 2017 TCJA.

The authors offer support for the notion that companies are behaving rationally by providing short-term benefits to employees when employees are, on average, younger. The competitive nature of the global market acts as an incentive to avoid permanent obligations such as wage and benefits increases. The data reveal that a significant number of companies had a transitory reaction to the latest tax cut.

The authors encourage future research, once sufficient time elapses, to exploit the time periods before and after the tax cut to provide a better assessment of the empirical impact of the 2017 tax cut on firm responses, conditional on workforce makeup.

The authors examine whether and how the Millennial cohort might shape firm behavior following changes in tax policy.

The purpose of this paper is to examine the joint effects of state ownership and tax rate cuts on accounting conservatism, considering the different levels of foreign ownership in the context of Vietnam.

The paper uses ordinary least squares regressions and a data set of 405 firms covering the period 2007 to 2019. The manuscript uses three measures of accounting conservatism: Basu’s 1997 timeliness of earnings, Basu’s 1997 earnings persistence and the book-to-market ratio.

State-owned enterprises (SOEs) adopt less accounting conservatism than non-SOEs; however, the result is only robust in firms with foreign ownership being lower than the foreign ownership median. Firms increase accounting conservatism in the year immediately prior to the year that the tax rate cuts become effective. An SOE possesses an unusual conflict both as a taxpayer and in having its controlling interest held by the government, which is both a tax creator and a tax collector. Interestingly, the increase in accounting conservatism prior to the year of the tax rate cuts is more pronounced for non-SOEs than SOEs.

This research is beneficial to investors and policymakers where the government is both the taxpayer and tax collector and in emerging markets where foreign investment is local firms’ important financing.

To the best knowledge, this study is the first in examining the joint effects of state control and tax rate cuts on accounting conservatism.

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

Donald Trump portrayed himself as a crusader against corrupt elites, claiming he would “drain the swamp.” Corporate elites generally depicted themselves as either trying to work with him or as directly opposed to him. Yet a closer analysis of Trump's policies and their outcomes in key issue areas, from taxes to immigration to the environment, shows continuity with previous pro-corporate policies. Furthermore, by positioning Trump as opposed to the elite, Trump and commentators on his presidency created a “radical flank” effect that made status quo, pro-corporate policies appear as progressive victories. This analysis suggests that a focus on the personal characteristics of politicians is misleading, and that the focus of political discourse needs to be on the power structure that shapes policy outcomes.

The chapter examines whether the lowering of dividend taxes as part of the US Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) resulted in an increase in dividend payouts at the expense of research and development (R&D) spending. Using 1,206 US firm-years data, we find that R&D investments responded negatively to higher levels of dividend payout in the post-JGTRRA of 2003 tax regime compared with the pre-regime. We also find that R&D intensity and financial constraint moderate this negative relation. That is, this relation only holds for firms in low R&D-intensity industries and firms facing high levels of financial constraint. From a tax policy perspective, even though the tax cut on dividend receipts has the benefit of lowering the cost of equity capital, the benefit appears to have come at the expense of R&D investment.

Two questions broadly drove this research: Donald Trump promised to fix the economy and create jobs, and he is ending or renegotiating trade treaties. Is he creating more jobs? How can Trump create a more inclusive economy? The paper aims to discuss these issues.

This paper closely examines Trump’s economic policies and draws from past Democratic and Republication track records to explain how Trump’s policies will contribute to greater income inequality.

By all measures, President Trump fails on measures of equality, diversity, and inclusion.

This original paper examines the implications of the Trump administration’s policies in the areas of tax cuts (for small- and medium-sized enterprises rather than large corporations), incentives to support small business growth, entrepreneurship training, education and skills training (to retool Americans), and infrastructure spending.

Using data obtained from the National Conference of State Legislatures (NCSL), we investigate modifications in state tax codes to determine their characteristics, the apparent trends of state tax reform, and whether changes constituted comprehensive reform or mere incremental adjustments to existing tax structures. Based on the data, we find that few states achieved comprehensive tax reform in the 1990s despite the fiscal surplus that provided an environment conducive to widespread change. Moreover, we find that a significant number of changes that were enacted in the 1990s involved increases or decreases in state tax revenue that were ultimately tied to economic cycles. We suggest that adequacy in state tax collections may be the most common tax principle adhered to with regard to changes in tax structure. We also conclude that reform efforts in the 1990s were most successful when approached in an incremental fashion in the absence of a significant precipitating reform driver.