The Cross-sectional Determinants of Corporate Capital Expenditures: a Multinational Comparison**
نویسندگان
چکیده
This study predicts cross-sectional investment (asset-normalized capital expenditures) innovations within the United States, Canada, Great Britain, (mainland) Europe, and Japan. We find that lagged stock returns are the most important cross-sectional predictors of investment increases – except in mainland Europe. American firms tend to react more than Japanese firms but less than Canadian and British firms. However, the differences between Japanese firms and U.S. firms are small. In contrast, European firms appear to conduct their investment policy without much regard for their own lagged stock performance.
منابع مشابه
Foreign Direct Investment and the Domestic Capital Stock
This paper evaluates evidence of the impact of outbound foreign direct investment (FDI) on domestic investment rates. OECD countries with high rates of outbound FDI in the 1980s and 1990s exhibited lower domestic investment than other countries, which suggests that FDI and domestic investment are substitutes. U.S. time series data tell a very different story, however: years in which American mu...
متن کاملCorporate Taxation and International Competition
Countries around the world continue to tax corporate income at significant rates despite downward pressures from international competition. Average statutory corporate income tax rates fell from 46% in 1982 to 33% in 1999, though tax bases simultaneously broadened, as a result of which average corporate tax collections actually rose from 2.1% of GDP in 1982 to 2.4% of GDP in 1999. Two pieces of...
متن کاملIMF Staff Papers, Vol.49, No.1, 2002
Based on industry-level data for majority-owned U.S. foreign affiliates in 49 countries, this paper identifies the determinants of the cross-country distribution of fixed capital within multinational companies. Controlling for market size and trade openness, it is shown that U.S.-owned capital stocks are high in countries with a history of high profitability and low earnings variability. Simila...
متن کاملThe Main Determinants of Under 5 Mortality Rate (U5MR) in OECD Countries: A Cross-Sectional Study
Introduction: Child mortality indices are key element that reflects health Status of societies and inform policy makers to take suitable policies to reduce them. This study was performed to examine the main determinants of under-5 mortality rate (U5MR) in OECD countries in two cross-sections, 2010 and 2013, and the results of them was compared. Material and Methods: This was a cross- sectional ...
متن کاملTaxing the Financially Integrated Multinational Firm
This paper develops a theoretical model of corporate taxation in the presence of nancially integrated multinational rms. Under the assumption that multinational rms at least partly use internal loans to nance foreign investment, we nd that the optimal corporate tax rate is positive from the perspective of a small, open economy. This nding contrasts the standard result that the optimal sou...
متن کامل