Search results

The purpose of this study is to determine the extent to which the tax system constitutes a first-order element influencing the location of holding companies in Switzerland.

To achieve this goal, the authors have estimated an econometric model using ordinary least squares. The authors also provide a unique statistical database of holding companies established in Switzerland. The independent tax variables revolve around concepts of tax burden and effort, whereas the non-tax variables are generally those referred to in the literature on location of investments.

The study concludes that, in addition to the tax burden, there are other qualitative variables that show the same influence on the geographic location of holding companies in Switzerland.

The study of holding companies as instruments of international tax planning is usually linked to law offices or consulting firms that specialize in the international tax system – not university academic research per se. The interaction of academic theory and international fiscal praxis provides an interesting perspective from which to approach this topic.

This paper sets out to examine some of the performance characteristics of holding companies in the UK in the years 1964–1973. It is difficult to define precisely the unique characteristics of a holding company, but our concern in this article is with controlling British holding companies who own at least 51% of the equity of their principal subsidiaries and whose activities are primarily in manufacturing industry. All the companies in this study are registered as holding companies and as such attract particular tax advantages in such areas as group relief; asset transfer between parent or subsidiaries; and “rollover relief” for capital gains tax purposes.

This study aims to investigate the relationship between political connections, financing decisions and cash holding.

Based on historical data from 181 active non-financial firms listed on Gulf Cooperation Council (GCC) Stock Exchange Markets during the period of 2009–2016, this study uses ordinary least squares and dynamic system-generalized method of moments to test the research hypotheses. The final data set comprises a total of 1,448 firm-year observations from ten major non-financial industry classifications.

This study finds a positive relationship between political connections and each of internal financing proxied by retained earnings ratio and external financing proxied by short- and long-term debt to total asset. The findings also show a positive relationship between political connections and cash holding.

The findings of the study provide a better understanding of the role of politically connected directors in financing decisions and cash holding in the GCC. Investors can consider the presence of royal family members in the board of directors when making investment decision. Policymakers are encouraged to develop more effective policies that encourage listed firms to provide information on the political positions of the board of directors, managers and major shareholders/owners of companies.

This study contributes to the literature by providing empirical evidence on the relationship between political connections and financing decisions by focusing on the GCC region. This study also highlights that boards in connected firms in the GCC have lower monitoring role owing to political interventions, and that connected firms face higher agency problems as they have weak governance and boards compared with non-connected firms.

The main aim of the present study is to propose a framework for selecting an appropriate electronic business (e‐business) model in managerial holding companies with a chain structure acting in the area of the automobile industry.

This is an applied study conducted as a survey and case study. First, the factors affecting selection of an appropriate e‐business model in managerial holding companies with chain structure in auto industry are identified through a survey and by testing hypotheses. Then, these factors are measured as a case study in Iran Khodro Co. so that the appropriate e‐business model can be determined for this managerial holding company with chain structure.

In this study, 18 different factors were identified for the five main criteria in identifying e‐business. Using the survey conducted in the statistical sample, only three factors of internal and external integration of human resources, flexibility, and decentralization in the responsibilities were identified as less important factors in identifying an appropriate model of e‐business in managerial holding companies with chain structure in automobile industry.

One limitation of the study was lack of sufficient managerial holding companies with a chain structure in the Iranian automobile industry, so that only two companies of Iran Khodro and Saipa possess holding and chain structure. Thus, generalization of the results of this study to the whole society must be done with great care in association with more researches.

This study, expanding and operationalizing a conceptual model, tries to identify the set of determining factors in selecting appropriate e‐business models in the managerial holding companies with a chain structure in the automobile industry.

Introduction Industrial holding companies continue to play an important role in the development of many Western style economies. These institutions take a wide variety of forms to accomplish their principal objective, namely the control and management of multi‐company systems which normally span a wide range of industrial sectors. They are more typically found in Europe and Japan than in the US, where both legal constraints and the pursuit of managerial efficiency have resulted in the dominance of the large scale integrated, multi‐unit corporation as an organisational form. Within Europe, especially in Belgium and France, inter‐market conglomerates and holding companies maintain an important position in some of the more basic sectors of the economy—including banking, insurance, transport, public utilities, basic metals and construction. In both these countries however, these are characteristically financial institutions managing a portfolio of stocks in order to exercise control over the companies in which they hold equity capital.

The purpose of this article is to determine the influence of the tax system on the location of holding companies in Spain.

To achieve this purpose, we have used an analysis of cointegration in time series. The independent variable used was the number of holding companies under Régimen de Entidades de Tenencia de Valores Extranjeros Spanish regime. The dependent variables were divided into two groups: fiscal and non-fiscal variables. The dependent fiscal variables are effective tax rate and double taxation convention, whereas the non-fiscal dependent variables are government effectiveness and business freedom.

The study concludes that the fiscal variables are relevant to establish a holding company in Spain, but there are other variables such as government effectiveness and business freedom that show as well as influence on the location of holding companies.

In the year 2015, the article The influence of the tax system on the location of holding companies in Switzerland was published in the Competitiveness Review. In this article, the influence of taxation on the decision to locate a holding company in Switzerland was analyzed. Now that the Spanish holding regime is consolidated, thanks to more than twenty years of application in our tax legislation, we consider it important to carry out an analysis of the influence of taxation in the decision to locate a holding company in our country. As already mentioned in the article published in 2015, the study of the taxation of holding companies is a topic related more to law firms and/or tax advisors than to academic research, and it is for this reason that there are few empirical studies on this topic. Hence, the research developed in this paper is important.

The Growth of Institutional Shareholdings 1966–1980. Institutional investors, particularly insurance companies and pension funds, are consistent purchasers of company and overseas securities. Of particular interest is the ownership of U.K. quoted equities, rather than ownership of debentures, preference shares and overseas securities. Ownership of the ordinary share capital is of particular interest because the votes attached to equities give the holders legal powers to influence management through general meetings. The impact of the growth of institutional shareholdings on corporate management and the London Stock Exchange will be discussed in later articles. This article demonstrates the growth of institutional ownership of British industry, comments on the concentration of institutional holdings in large companies, illustrates the avoidance of new issues by financial institutions, and comments on the future pattern of U.K. share ownership.

A comprehensive review of UK share ownership during the 1966–1980 period, with particular reference to the work of Revell and Moyle at the Department of Applied Economics, Cambridge.

Although the focus of this issue is on investment in British industry and hence we are particularly concerned with debt and shares, the transactions and holdings in these cannot be separated from the range of other financial claims, including property, that are available to investors. In consequence this article focuses on an overview of the financial system including in Section 2 a presentation of the flow of funds matrix of the financial claims that make up the system. We also examine more closely the role of the financial institutions that are part of the system by utilising the sources and uses statements for three sectors, non‐bank financial institutions, personal sector and industrial and commercial companies. Then we provide, in Section 3, a discussion of the various financial claims investors can hold. In Section 4 we give a portrayal of the portfolio disposition of each of the major types of financial institution involved in the market for company securities specifically insurance companies (life and general), pension funds, unit and investment trusts, and in Section 4 a market study is performed for ordinary shares, debentures and preference shares for holdings, net acquisitions and purchases/sales. A review of some of the empirical evidence on the financial institutions is presented in Section 5 and Section 6 is by way of a conclusion. The data series extend in the main from 1966 to 1981, though at the time of writing, some 1981 data are still unavailable. In addition, the point needs to be made that the samples have been constantly revised so that care needs to be exercised in the use of the data.

The purpose of this study is to determine whether the incremental difference between the actual level of cash from the optimal amount (excess and insufficient cash) to the abnormal amount of cash (abnormal positive and negative changes in cash) leads to an increase in audit fees.

To investigate the main purpose of this study, first, the authors, respectively, estimate the optimal cash flow and the normal (optimal) changes in cash by Oler and Picconi (2014) and Bates, Kahle and Stulz (2009) models for each period. In this regard, financial information of 116 companies listed on the Tehran Stock Exchange is selected during the period 2011-2016.

The results of this investigation indicate that holding an excessive amount of cash than optimal size and audit fees are negatively associated. Moreover, it is documented that abnormal changes in cash flow and audit fees are not significantly associated.

The outcomes of the current study contribute to providing an accurate estimation to determine audit fees in emerging markets.