Corpus ID: 154647605

Reinvestment Behavior of Large Repatriating Firms

@inproceedings{Brennan2012ReinvestmentBO,
  title={Reinvestment Behavior of Large Repatriating Firms},
  author={T. J. Brennan},
  year={2012}
}
I study changes in spending for corporations that repatriated cash pursuant to the tax holiday of the 2004 American Jobs Creation Act (AJCA). I analyze the entire multi-year period during which reinvestment of repatriations was permitted using a sample of public firms that includes over 50% of all repatriating firms and more than 95% of all amounts repatriated. Like prior researchers, I find that a portion of repatriated cash was used to return value to shareholders, but in contrast to common… Expand
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References

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The American Jobs Creation Act (AJCA) of 2004 provided a one-time tax holiday for firms to repatriate foreign earnings. AJCA was intended to stimulate the economy by expediting the repatriation of… Expand
Corporate Governance and Extraordinary Earnings Repatriations: Evidence from the American Jobs Creation Act
The American Jobs Creation Act of 2004 temporarily reduced the repatriation tax rate on U.S. multinational firms' foreign earnings by 85%. Consequently, approximately $300 billion previously held as… Expand
What Happens After a Holiday? Long-Term Effects of the Repatriation Provision of the AJCA
This Article analyzes the long-term impact on firm behavior of the repatriation tax holiday of the American Jobs Creation Act of 2004 (AJCA). The approach taken is empirical and based on data… Expand
Bringing It Home: A Study of the Incentives Surrounding the Repatriation of Foreign Earnings under the American Jobs Creation Act of 2004
The American Jobs Creation Act of 2004 (the Act) creates a temporary tax holiday that effectively reduces the U.S. tax rate on repatriations from foreign subsidiaries from 35% to 5.25%. Firms receive… Expand
Cash-Flow and Market Response to Repatriation
The American Jobs Creation Act of 2004 (AJCA) provided a limited-time tax deduction for U.S. firms repatriating accumulated foreign earnings as cash dividends, and I study this natural experiment in… Expand
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This paper analyzes the impact on firm behavior of the Homeland Investment Act of 2004, which provided a one-time tax holiday for the repatriation of foreign earnings by U.S. multinationals. The… Expand
A Revenue Estimate Case Study: The Repatriation Holiday Revisited
Edward D. Kleinbard is chief of staff and Patrick Driessen is a senior economist for the Joint Committee on Taxation. The repatriation exemption contained in the 2004 Jobs Act (section 965) offers an… Expand
Investment and Capital Constraints: Repatriations Under the American Jobs Creation Act
The American Jobs Creation Act (AJCA) significantly lowered US firms' tax cost when accessing their unrepatriated foreign earnings. Using this temporary shock to the cost of internal financing, we… Expand
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We investigate which provisions, among a set of twenty-four governance provisions followed by the Investor Responsibility Research Center (IRRC), are correlated with firm value and stockholder… Expand
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Corporate-governance provisions related to takeover defenses and shareholder rights vary substantially across firms. In this paper, we use the incidence of 24 different provisions to build a… Expand
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