International tax research beyond APB 23

Kevin Markle, University of Iowa

ATA Doctoral Consortium, Washington, D.C. February 25, 2015

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Main points1. The international tax research landscape

2. Our competitive advantage

3. With great power comes…

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Research in international tax

If you are the smartest person in the room,

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you are in the wrong room.

Economists Lawyers

Accountants

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Our competitive advantageWe understand financial accounting

• Hanlon, Lester, and Verdi – The effect of repatriation tax costs on US multinational investment

• Edwards, Kravet, and Wilson – Trapped cash and the profitability of foreign cash acquisitions

• De Simone – Does a common set of accounting standards affect tax-motivated income shifting for multinational firms?

• Blouin, Huizinga, Laeven, and Nicodeme – Thin capitalization rules and multinational firm capital structure

• Dyreng and Markle – The effect of financial constraints on the tax-motivated income shifting of U.S. multinationals

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With great power comes…

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relevance

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We can contribute• OECD BEPS Project

Huge challenge is “measuring BEPS”

• Regime changes and tax reform We understand how existing data can be used in a quasi-experimental setting

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