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Book part
Publication date: 22 October 2019

B. Anthony Billings, Chansog (Francis) Kim and Cheol Lee

In view of the recent enhanced concerns of the SEC and PCAOB that Accounting Principles Board Opinion No. 23 (APB 23)–asserting firms do not comply with the “sufficient evidence”…

Abstract

In view of the recent enhanced concerns of the SEC and PCAOB that Accounting Principles Board Opinion No. 23 (APB 23)–asserting firms do not comply with the “sufficient evidence” criteria of APB 23, we examine whether APB 23–asserting firms that declared their foreign earnings as permanently reinvested abroad are less likely to repatriate those foreign earnings under the American Jobs Creation Act (AJCA) of 2004, compared with similar non-asserting firms. The asserting firms are required to disclose sufficient evidence that validates an ability to meet their domestic cash needs with only earnings generated in the United States and their plans to indefinitely reinvest foreign earnings outside the United States. Estimates show that asserting firms are more likely to repatriate their foreign earnings than non-asserting firms. In addition, we find that the probability of making an election to repatriate permanently invested foreign earnings under the AJCA of 2004 is higher for firms with nonbinding foreign tax credit (FTC) limitations that have made an APB 23 declaration to permanently invest foreign earnings abroad. These findings suggest that asserting firms’ declarations to indefinitely reinvest foreign earnings abroad are not well grounded, thereby indirectly validating the SEC’s and PCAOB’s increased scrutiny for supporting evidence for APB 23 assertion. The estimates also show that the likelihood of making an election to repatriate foreign earnings under the AJCA of 2004 increases with asserting firms’ liquidity constraints and financial distress: the financial characteristics listed as part of APB 23 criteria of sufficient evidence and highlighted by the SEC and PCAOB comment letters, indicating that asserting firms raid permanently reinvested foreign earnings to satisfy their financial needs and constraints.

Book part
Publication date: 19 October 2020

Xin Zhao, Greg Filbeck and Ashutosh Deshmukh

Prior studies document increased share repurchase activity after the temporary tax holiday under the American Jobs Creation Act (AJCA) of 2004. Our study examines the moderating…

Abstract

Prior studies document increased share repurchase activity after the temporary tax holiday under the American Jobs Creation Act (AJCA) of 2004. Our study examines the moderating effect of financial statement readability on share repurchases in response to a temporary reduction in repatriation tax. Building on prior literature, we argue that firms with excess cash overseas, despite the lack of investment opportunities, produce less readable financial statements to hide bad news. We find that firms with less readable financial statements initiated higher levels of share repurchases after the AJCA. Our results contribute to the existing literature showing (1) firms hold excess cash overseas mainly for tax reasons rather than for nontax reasons such as precautionary motives or empire-building concerns and (2) firms return excess funds to investors rather than squander the funds once the tax cost of repatriation is reduced. Firms that suffer from the overinvestment problem using hard-to-read financial statements to hide the bad news of a lack of investment opportunities are more likely to benefit from the tax cut. Our study provides timely evidence of potential firm response to the 2017 Tax Cut and Jobs Act, which permanently removes the repatriation tax.

Book part
Publication date: 19 October 2020

Joyce S. Osland, Betina Szkudlarek, Gary R. Oddou, Norihito Furuya and Juergen Deller

Knowledge transfer is an important global leader (GL) competency, given their role as knowledge brokers and capacity builders. However, knowledge transfer skills and the transfer…

Abstract

Knowledge transfer is an important global leader (GL) competency, given their role as knowledge brokers and capacity builders. However, knowledge transfer skills and the transfer process itself have received scant attention from both global mobility and leadership scholars. Similarly, multinationals have seldom systematically collected and utilized repatriate knowledge, despite the competitive advantage it represents in a global knowledge economy. To fill this gap, an exploratory qualitative study employing critical incidents and interviews with a multi-country sample of 47 German, Japanese, and US repatriates identified variables that facilitate knowledge transfer attempts to the work unit. Our findings corroborate the proposed variables in a conceptual model of the transfer process and articulate the transfer skills that help explain their ability to transfer. Most importantly, our findings introduce an interactive transfer model that explicates the microprocess of transfer in the repatriate–work unit relationship. We conclude with implications for global leadership research and HRM practice.

Book part
Publication date: 3 September 2016

Yoko Naito

The purpose of this study is to understand the multiple aspects of readjustment of repatriates and to identify determinants relating to the readjustment, to enable MNEs…

Abstract

Purpose

The purpose of this study is to understand the multiple aspects of readjustment of repatriates and to identify determinants relating to the readjustment, to enable MNEs (multinational enterprises) to utilize the advantages and retain the valuable knowledge that repatriates offer to the organization for talent management.

Methodology/approach

This study conducted a quantitative work involving questionnaire responses of 192 repatriates who returned to Japan after international assignments in MNEs.

Findings

Based on the results of the analysis using this Japanese data, the discussion is summarized in the following three points. First, it is important to seek determinants for the readjustment by focusing on all the aspects of ‘repatriation adjustment’ because the determinants of subordinate aspects are not always identical. Second, ‘organizational factors — work duties’ play a vital role in the readjustment to the organization different from the readjustment to daily life. Further, organizations benefit from providing assistance to both the repatriates and the family of the repatriates to ensure that they are able to successfully readjust to life in the home country.

Originality/value

This study performed a comprehensive analysis of the subordinate concepts of the ‘repatriation adjustment’ dividing it into four aspects of job and private life. Factors related to the readjustment were classified into three factors by using a framework that analyses issues repatriates face by classifying these into changes occurring over time and changes due to cultural differences, and show a logical framework that elucidates the repatriation adjustment factors.

Details

Global Talent Management and Staffing in MNEs
Type: Book
ISBN: 978-1-78635-353-5

Keywords

Article
Publication date: 1 June 2023

Lena Maria Fischer and Marc Schwarzkopf

In the context of international assignments, repatriates are confronted with social, organisational and cultural challenges. However, the impact of community and social support on…

Abstract

Purpose

In the context of international assignments, repatriates are confronted with social, organisational and cultural challenges. However, the impact of community and social support on the reintegration process has gone unnoticed. The purpose of this paper is to identify the influencing factors on the reintegration process of expatriates who were sent to Asia, especially considering social support and the role of the community. In the context of the community, this paper discusses which factors influence the reintegration process after repatriates return to Germany.

Design/methodology/approach

In order to research reintegration problems as well as social support and the role of the community, seven semi-structured interviews were conducted with repatriates from Germany.

Findings

The central results of the study show that there are variables in different areas that influence the reintegration process of repatriates sent to Asia, which have both reintegration-promoting and reintegration-inhibiting effects. Furthermore, it was found that a lack of support from social networks in the home country has negative effect on the reintegration process causing repatriates to stay in known repatriate communities.

Originality/value

The results of the study demonstrate that social networks and communities in the home country represent crucial challenges in the reintegration process. Furthermore, it demonstrates the need for future exploratory research into this area to gain further insights into this topic.

Details

Journal of Global Mobility: The Home of Expatriate Management Research, vol. 11 no. 4
Type: Research Article
ISSN: 2049-8799

Keywords

Article
Publication date: 7 April 2023

Chun-Hsiao Wang

This paper aims to integrate the perspectives of expatriation and repatriation not as two unrelated stages but rather as one integrated process.

Abstract

Purpose

This paper aims to integrate the perspectives of expatriation and repatriation not as two unrelated stages but rather as one integrated process.

Design/methodology/approach

A sample comprising 94 human resource (HR) representatives from large Taiwanese multinational corporations (MNCs) provided objective data on the organizational expatriate/repatriate practices.

Findings

The use of developmental assignments was positively related to organizational repatriate turnover, but such a positive relationship was significant only when MNCs used low levels of repatriation support practices. Organizational repatriate turnover was negatively related to employee willingness for expatriation and the use of developmental assignments increased employee willingness for expatriation. Organizational repatriate turnover was a competitive mediator between the use of developmental assignments and employee willingness for expatriation. Moreover, organizational repatriate turnover mediated the relationship when MNCs used low levels of repatriation support practices, but not when MNCs used high levels of repatriation support practices.

Practical implications

MNCs should ensure the use of development assignments is matched with high levels of repatriation support practices and treat expatriation and repatriation management as one integrated process.

Originality/value

As the world economy becomes more integrated, MNCs are increasingly challenged in their efforts to send employees abroad on expatriate assignments that are developmental by design, to reduce organizational repatriate turnover and to increase employee willingness for expatriation. However, there is a lack of understanding about how they are all linked.

Details

Cross Cultural & Strategic Management, vol. 30 no. 3
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 14 July 2022

Reimara Valk

The purpose of this paper is to investigate Global Talent Management (GTM) approaches and praxis with a specific focus on global deployment goal congruence and alignment between…

Abstract

Purpose

The purpose of this paper is to investigate Global Talent Management (GTM) approaches and praxis with a specific focus on global deployment goal congruence and alignment between expatriates and the organization, talent recognition, valuation and utilization of repatriates.

Design/methodology/approach

Qualitative research in this paper entails interviews with 78 expatriates and repatriates across the globe, investigating their experiences with, perspectives on and perceptions of GTM praxis and approaches.

Findings

Findings of this study revealed firstly, that there is incongruence and misalignment of goals in global deployment where organizational, financial goals prevailed over social and human-oriented goals. Secondly, a lack of global talent pools and pipelines where interviewees indicated that expatriate assignments (EAs) were typically reactionary without strategic forward thinking on talent management (TM), observable through organizations' focus on short-term return on investment (ROI) on EAs instead of long-term talent investments. Thirdly, there was little recognition and non-utilization of cross-cultural human capital and talents upon repatriation.

Research limitations/implications

This study relied on self-reports of expatriates' and repatriates' perceptions of and experiences with GTM approaches. Future research should gather multi-actor, multiple-source data from expatriates and repatriates, senior leaders, line managers, GTM strategic business partners to gain more insight into GTM approaches and praxis.

Practical implications

Organizations are recommended to conduct “Global Talent Management Open Strategy Formation” as the foundation of an evidence-based, integrative GTM architecture and praxis to ensure GTM effectiveness.

Originality/value

This paper contributes to the literature by advocating for sustainable, people-centric GTM to safeguard the longevity and sustainability of all members of the talent ecosystem.

Details

Employee Relations: The International Journal, vol. 44 no. 6
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 16 November 2019

Qi Flora Dong, Yiting Cao, Xin Zhao and Ashutosh Deshmukh

The effect of tax policy on the repatriation of foreign earnings is a topic of ongoing discussion among policymakers, academics, and the popular press. It has become more salient…

Abstract

The effect of tax policy on the repatriation of foreign earnings is a topic of ongoing discussion among policymakers, academics, and the popular press. It has become more salient due to the 2017 Tax Cuts and Jobs Act (TCJA), which permanently removed repatriation tax. This paper synthesizes the academic literature examining US multinational firms’ responses to the repatriation tax holiday initiated by the 2004 American Jobs Creation Act (AJCA), which temporarily reduced the tax on the repatriation of foreign earnings. By synthesizing firm responses to the temporary tax reduction, we identify similarities and differences in: (1) theories about why and when repatriation tax affects firms’ repatriation decisions; (2) empirical evidence of whether repatriation tax affects firms’ repatriation decisions; and (3) empirical evidence of whether repatriation tax affects firms’ investment decisions. The analyses provide insights into the effect of the permanent removal of repatriation tax under the TCJA and explore avenues for future research. This synthesis of the AJCA literature informs tax research and practice as well as policymaking.

Details

Journal of Accounting Literature, vol. 43 no. 1
Type: Research Article
ISSN: 0737-4607

Keywords

Article
Publication date: 25 April 2008

Annette Begley, David G. Collings and Hugh Scullion

The purpose of this paper is to examine the self‐initiated repatriation experience of native professionals as they return to the labour market in the Republic of Ireland of their…

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Abstract

Purpose

The purpose of this paper is to examine the self‐initiated repatriation experience of native professionals as they return to the labour market in the Republic of Ireland of their own volition and without the support of an employer.

Design/methodology/approach

A mixed methodology was employed to gather the data. In total, 40 responses were received from an initial open solicitation calling for research participants. Following a short survey receiving 34 responses, individuals who had returned without the aid of an employer to the Republic of Ireland and were willing to participate in further research were invited to participate in either a focus group discussion or in‐depth individual interviews. Ultimately, there were seven participants in the focus group and eleven individual in‐depth interviews.

Findings

The study found that the experiences of those in this study returning of their own volition and those of the more traditional repatriate do not seem to differ significantly across the facets of adjustment relating to adjustment in the general home country environment and adjustment to home country nationals, although subtle variations may be found. The main differences may be found when one investigates the facet of adjustment to work. Given that those returning of their own initiative are not returning to a position within a parent company, they must seek out their own employment. This adds a further source of stress and upheaval to an already difficult repatriation process.

Research limitations/implications

This is an exploratory study and hence requires further empirical verification. Nonetheless the study provides some useful signposts for future study in the area.

Originality/value

This research is unique in that it bridges a significant lacuna in the existing international human resource management literature by concentrating on the self‐initiated repatriation experience (SRE). This research is all the more important given that increasing numbers of individuals have returned to Ireland to seek work at their own discretion with the advent of the Celtic Tiger.

Details

Employee Relations, vol. 30 no. 3
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 18 September 2007

Shu‐Cheng Steve Chi and Shu‐Chen Chen

This paper aims to investigate the relationships among repatriates' perceived psychological contract fulfillment, counterfactual thinking, and job attitudes.

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Abstract

Purpose

This paper aims to investigate the relationships among repatriates' perceived psychological contract fulfillment, counterfactual thinking, and job attitudes.

Design/methodology/approach

The paper sampled 135 repatriates from 16 multinational companies (MNCs) in Taiwan through a survey questionnaire. The paper used hierarchical regression analyses to test its hypotheses.

Findings

The study results showed that repatriates' perceived fulfillment of their psychological contracts was negatively related to turnover intent and positively related to organizational commitment, after controlling for the variables of change assessments. The study also finds a positive relationship between upward counterfactual thinking and turnover intent and between downward counterfactual thinking and organizational commitment. Moreover, repatriates' perceived fulfillment of their psychological contracts was found to be related to upward counterfactual thinking but not downward counterfactual thinking.

Practical implications

A subjective perception of psychological contract fulfillment is a more important predictor of job attitudes than actual changes in position, pay, and skill improvement. Therefore, it is important for MNCs to maintain open communications with their repatriates to ensure clear understanding of the agreement existing between employees and the organization.

Originality/value

In the international human resource literature, it is unclear whether the relationship between expatriates' (or repatriates') perceived fulfillment of their psychological contract with their job attitudes are simply due to their assessments of actual changes in pay, position, and skills. In the case of repatriation, the paper clarifies the phenomenon by distinguishing both repatriates' assessments of changes before and after expatriation and their perceived fulfillment of psychological contracts (and their counterfactual thinking).

Details

International Journal of Manpower, vol. 28 no. 6
Type: Research Article
ISSN: 0143-7720

Keywords

1 – 10 of over 1000