Proceedings of the 3rd International Conference on Advances in Management Science and Engineering (IC-AMSE 2020)

Income Tax and Capital Structure of Multinational Corporations

Authors
Deqiang Deng, Rui Shao
Corresponding Author
Rui Shao
Available Online 6 April 2020.
DOI
https://doi.org/10.2991/aebmr.k.200402.003How to use a DOI?
Keywords
multinational corporations, income tax, capital structure
Abstract
With economic globalization and the deepening of international division of labor, multinational corporations have become an important part of the world economy. Different from the scope of business activities in which domestic enterprises are only distributed in one country, the scope of business activities of multinational corporations extends to a number of countries and regions. Therefore, the complex and diversified business activities environment and characteristics of it have caused a special impact decision system for the capital structure of multinational corporations. The operations of multinational companies are affected by exchange rates and national policies, and they have special risks and advantages. In particular, multinational companies face a complex tax environment. The income tax has an impact on the capital structure of multinational corporations. The theoretical basis of this effect includes MM theory and trade-off theory. The decision of capital structure is an important financial issue for multinational companies. This paper summarizes some conclusions and suggestions based on the literature on capital structure and tax burden of multinational corporations.
Open Access
This is an open access article distributed under the CC BY-NC license.

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Cite this article

TY  - CONF
AU  - Deqiang Deng
AU  - Rui Shao
PY  - 2020
DA  - 2020/04/06
TI  - Income Tax and Capital Structure of Multinational Corporations
BT  - Proceedings of the 3rd International Conference on Advances in Management Science and Engineering (IC-AMSE 2020)
PB  - Atlantis Press
SP  - 20
EP  - 24
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200402.003
DO  - https://doi.org/10.2991/aebmr.k.200402.003
ID  - Deng2020
ER  -