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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…

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.

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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…

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.

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Book part
Publication date: 19 October 2021

Kimberly S. Krieg

The extent to which firms repatriate indefinitely reinvested foreign earnings (IRFE) has been a major issue in the US tax system. Congress enacted provisions in the 2017…

Abstract

The extent to which firms repatriate indefinitely reinvested foreign earnings (IRFE) has been a major issue in the US tax system. Congress enacted provisions in the 2017 Tax Cuts and Jobs Act (TCJA) specifically to remove tax barriers to repatriation. However, little is known regarding the repatriation of IRFE outside of the temporary tax incentive provided by the 2004 American Jobs Creation Act (AJCA). In this chapter, I provide evidence on such repatriations by identifying a sample of 67 firms from 2009 to 2015 that reverse the indefinite reinvestment designation of foreign earnings and announce a repatriation of foreign cash. In contrast to repatriations following the 2004 AJCA, I do not find evidence that a single economic factor, such as share repurchases, motivates the repatriation. Although, in general, I do not find evidence of a significant market response to the announcements, I find evidence of a negative market reaction to announcements by low foreign effective tax rate (ETR) firms without tax offsets, suggesting that the tax may not be fully priced. Overall, I provide insight into the reasons and implications of the announced repatriation of IRFE.

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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

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Article
Publication date: 16 May 2020

Sabrina Amir, Tyler G. Okimoto and Miriam Moeller

This paper examines how informal knowledge transfer processes unfold during the repatriation of Malaysian executives. The goal is to develop a repatriate knowledge…

Abstract

Purpose

This paper examines how informal knowledge transfer processes unfold during the repatriation of Malaysian executives. The goal is to develop a repatriate knowledge transfer process model, explaining the informal process through which repatriates make decisions about and transfer newly acquired knowledge.

Design/methodology/approach

Given the unexplored nature of the informal knowledge transfer process the study investigates, this research adopts an exploratory qualitative research approach using interview data from 10 Malaysian corporate executives over a period of 14 months, covering prerepatriation and postrepatriation stages.

Findings

The findings indicate that from the repatriates' perspectives, the process flows during repatriates' knowledge transfer depend on the ability and motivation of repatriates, as well as their opportunity to communicate the newly acquired knowledge to their home country organization. We likewise learned that the repatriates' ability to overcome repatriate adjustment and knowledge transfer challenges is crucial in order for them to proactively initiate informal knowledge transfer.

Practical implications

This research is significant as it will assist current and future expatriates to plan and prepare for repatriation and eventual knowledge transfer. The findings will also be useful to organizations that employ repatriates in preparing action plans for repatriation rather than solely focusing on expatriation.

Originality/value

Research and practice formally argue that expatriates are expected to transfer knowledge from the home country organization to the host country organization. While on assignment, expatriates become exposed to various types of new knowledge during the assignment, setting them up to disseminate this newly acquired knowledge to their home country organization upon repatriation – however, knowledge transfer upon repatriation is largely informal. This paper examines how this informal knowledge transfer process unfolds in the repatriation context over a period of 14 months by qualitatively tracing the experiences of 10 Malaysian corporate executives.

Details

Journal of Global Mobility: The Home of Expatriate Management Research, vol. 8 no. 1
Type: Research Article
ISSN: 2049-8799

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Article
Publication date: 23 June 2020

David R. Ellis, Kaye Thorn and Christian Yao

While there is a burgeoning literature on self-initiated expatriates (SIEs), the emphasis has been on expatriation not repatriation. The purpose of this paper therefore is…

Abstract

Purpose

While there is a burgeoning literature on self-initiated expatriates (SIEs), the emphasis has been on expatriation not repatriation. The purpose of this paper therefore is to explore how repatriating SIEs perceive the experience of repatriation compared with their pre-repatriation expectations. Further, we examine the seminal work of Black et al. (1992) in the light of current day realities.

Design/methodology/approach

This qualitative research draws on interviews with SIE New Zealanders returning home. It is an exploratory longitudinal study, based on interview data collected prior to (n = 32), and after (n = 27) repatriation, comparing expectations and experiences of repatriation.

Findings

Findings show that there is a strong level of congruence between the expectations of the return and their experience of repatriation. This congruence eases the transition and mitigates the impact of reverse culture shock. We revise Black et al.'s framework of repatriation adjustment to more accurately reflect the expectations and experiences of repatriating SIEs, recognising the importance of individual agency and the impact of today's technological advances on repatriation.

Research limitations/implications

The contributions of this paper include clarification of repatriating SIEs. Further, through the revision of the framework, we identify new areas of research that would aid our understanding of repatriating SIEs and lead to the development of a more detailed model. We highlight the interplay between variables showing how these might mitigate the shock of repatriation.

Originality/value

Repatriation is an under-researched phase of the SIE, and this study provides empirical data that contributes to our understanding of the construct. Black et al.'s framework of repatriation adjustment is revised in the context of contemporary SIE, highlighting the holistic nature of self-initiated expatriation and repatriation, viewing the events not as discrete, but as a continuum of time.

Details

Career Development International, vol. 25 no. 5
Type: Research Article
ISSN: 1362-0436

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Article
Publication date: 2 September 2014

Reimara Valk, Mandy Van der Velde, Marloes Van Engen and Rohini Godbole

– The purpose of this paper is to gain insight into international career motives, repatriation and career success of Indian women in Science and Technology.

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Abstract

Purpose

The purpose of this paper is to gain insight into international career motives, repatriation and career success of Indian women in Science and Technology.

Design/methodology/approach

In total, 30 semi-structured interviews were conducted with (upper) middle-class Indian women in Science and Technology in Bangalore and New Delhi, India.

Findings

Thematic analysis resulted in four themes – International career motives, Theme 1: cross-cultural and scientific exposure; Repatriation reasons and experiences, Theme 2: family reunion, career prospects and readjustment; Career success, Theme 3: international experience; and career growth, Theme 4: social responsibility. Motives for international career mobility of Indian women were: exposure to foreign cultures, international collaboration in science and personal and professional development. Family formation and reunion and career prospects were reasons for repatriation and positively influenced repatriation experiences of Indian women. Readjustment to people and conditions in India impacted their repatriation experiences negatively. The meaning women attribute to career success is grounded in recognition from peers in science, career growth, satisfaction and contribution to science and Indian society.

Research limitations/implications

The sample of Indian female scientists may limit generalization of the findings to global career professionals in other professions from other countries with different socio-cultural and economic contexts.

Practical implications

HR policies that foster international careers of women scientists as well as women's networks in science to share and apply knowledge, and their contribution to the Indian economy and society will enhance global career success of women and strengthen the sustainable competitive position of organizations.

Originality/value

The study provides new insights into motivation for international career mobility and repatriation of women professionals from a developing country and their career success in the home country, and contributes to the development of theoretical frameworks on international career mobility and career success.

Details

Journal of Global Mobility, vol. 2 no. 2
Type: Research Article
ISSN: 2049-8799

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Article
Publication date: 19 July 2013

Reimara Valk, Mandy van der Velde, Marloes van Engen and Betina Szkudlarek

The purpose of this paper is to explore the influence of cultural identity change, organizational and social support and cultural distance on repatriation experiences of…

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1909

Abstract

Purpose

The purpose of this paper is to explore the influence of cultural identity change, organizational and social support and cultural distance on repatriation experiences of Indian international assignees.

Design/methodology/approach

Semi‐structured interviews were held with 19 Indians on international assignment in The Netherlands and 11 Indians repatriated from The Netherlands. Respondents were asked to reflect on their cultural identity changes and the effects of social support, organizational support and cultural distance between the host and the home country on their international assignment and repatriation experiences. Iterative thematic analyses revealed five central themes: cultural identity independence; knowledge utilization and organizational learning; social network support; global career prospects in the Indian economy; work‐life balance.

Findings

Cultural identity changes ranged from low adaptation to Dutch culture and happiness on return to India through to high cultural flexibility and readiness to move to another sojourn. The majority of respondents reported great appreciation by their supervisors and co‐workers and utilization of their knowledge gained in The Netherlands. These factors, in addition to good career prospects and social support from their informal networks, contributed positively to their repatriation experiences.

Originality/value

This study challenges the frequently reported negative repatriation experiences of sojourners from the West.

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Article
Publication date: 1 November 2002

Vesa Suutari and Katja Välimaa

Aims to increase our understanding of the antecedents of repatriation adjustment. The data were collected through a questionnaire survey among Finnish repatriates in…

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2317

Abstract

Aims to increase our understanding of the antecedents of repatriation adjustment. The data were collected through a questionnaire survey among Finnish repatriates in co‐operation with the Finnish union of qualified economics graduates. In the study four different facets of adjustment appeared instead of the three suggested in the literature (i.e. general, work, and interaction adjustment) since the work adjustment dimension appeared to consist of two separate dimensions, here named job adjustment and organisation adjustment. The included antecedent variables explained from 30 per cent to 50 per cent of the variance in the adjustment models related to different facets of adjustment. General adjustment was found to be related to the age of the respondent, the length of the assignment, the timing of role negotiations, expatriation adjustment problems, keeping up on events at home and role conflict. With regard to organisation adjustment three antecedent variables were found: timing of role decision, willingness to relocate internationally, and role conflict. Timing of role decision and role discretion appeared as positive correlates of job adjustment, and expatriation adjustment problems and role conflict as negative correlates of interaction adjustment.

Details

International Journal of Manpower, vol. 23 no. 7
Type: Research Article
ISSN: 0143-7720

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Article
Publication date: 13 March 2017

Liza Howe-Walsh and Nicole Torka

The purpose of this paper is to explore the role of and interaction between (potential) repatriation supporters to develop understanding of how this affects the repatriate…

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1401

Abstract

Purpose

The purpose of this paper is to explore the role of and interaction between (potential) repatriation supporters to develop understanding of how this affects the repatriate experience.

Design/methodology/approach

A (single) case study strategy was employed, using a multiple stakeholder approach, involving 21 in-depth interviews in a large UK-based institution with repatriates, home and host HR managers, international human resource (IHR) practitioners and line managers from both home and host locations.

Findings

Although line managers, senior managers, family members and third party providers (e.g. relocation agencies, tax advisors) are important for repatriation support, the case study evidence highlights that HR professionals are mainly responsible for the quality of the support delivered by other repatriation supporters. Inadequate support from the headquarters IHR department caused by a lack and unclear information about repatriation procedures and related responsibilities results in insufficient support for home and host HR managers. This negatively impacts repatriates line managers (perceptions of) HR support. Weaknesses in the support chain (headquarter IHR, home and host HR and line managers) are responsible for repatriates (perceived) limited or non-support.

Research limitations/implications

The small size of our sample, the single case study design and the method precludes generalisation of the findings. However, the authors’ “look inside” increased the understanding of repatriation support and in particular the support quality. By linking this information to the knowledge of previous studies on organisational support and the devolution of human resource management, the authors are able to identify several topics future studies in the field of repatriation management.

Practical implications

IHRM policies have to reflect the role of multiple stakeholders including home and host line managers and HR professionals as well as third party providers and assign clear lines of responsibility to provide a transparent and consistent experience. Repatriates family has to be acknowledged as a stakeholder that has a major influence on repatriation success and failure. Excluding partners and children issues from international career policies has to be considered as a serious HR shortcoming. Second, ensuring timely information regarding return positions. Providing debriefing interviews upon repatriation can help to identify future roles within the organisation. Equally important is exit interviews to explore whether the person has completed an assignment within the previous 24 months and whether this experience has contributed to their decision to leave the organisation. Opportunities to ensure repatriates are being considered for positions as part of the talent pool is crucial. Finally, the authors emphasise the need to acknowledge that third party vendors are part of the repatriation process and must be considered in terms of (perceived) organisational support.

Originality/value

This is one of the first studies that highlights the role and interaction of (potential) repatriation supporters. Specifically, this study contributes to addressing three knowledge gaps: it identifies a lack of communication among HR professionals and between them and line managers as a potential source of insufficient organisational support; the findings highlight HR professionals responsibility for supporting line managers and other repatriation supporters in operational repatriation management; and finally, the results support the assumption that HR professionals and line managers own (non-)experience with working abroad might affect the quality of support policies and practices for repatriates.

Details

Journal of Global Mobility: The Home of Expatriate Management Research, vol. 5 no. 1
Type: Research Article
ISSN: 2049-8799

Keywords

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