2019 |
Ajdacic, L D; Heemskerk, E M; Garcia-Bernardo, J The Wealth Defence Industry: A large-scale study on accountancy firms as profit shifting facilitators Journal Article Working paper, 2019. Abstract | Links | BibTeX | Tags: Globalization, multiplex corporate networks, offshore, offshore financial centres @article{Ajdacic2019, title = {The Wealth Defence Industry: A large-scale study on accountancy firms as profit shifting facilitators}, author = {L D Ajdacic and E M Heemskerk and J Garcia-Bernardo}, url = {http://osf.io/preprints/socarxiv/8t5za}, year = {2019}, date = {2019-12-04}, journal = {Working paper}, abstract = {Corporations increasingly engage in innovative ‘tax planning strategies’ by shifting profits between jurisdictions. In response, states try to curtail such profit shifting activities while at the same time attempting to retain and attract multinational corporations. We aim to open up this dichotomy between states and corporations and argue that a wealth defence industry of professional service firms plays a crucial role as intermediaries. We investigate the subsidiary structure of 27,000 MNCs and show that clients of the Big Four accounting firms show systematically higher levels of aggressive tax planning strategies than clients of smaller accounting firms. We specify this effect for three distinct strategies and also uncover marked differences across countries. As such we provide empirical evidence for the systematic involvement of auditors as intermediaries in corporate wealth defence.}, keywords = {Globalization, multiplex corporate networks, offshore, offshore financial centres}, pubstate = {published}, tppubtype = {article} } Corporations increasingly engage in innovative ‘tax planning strategies’ by shifting profits between jurisdictions. In response, states try to curtail such profit shifting activities while at the same time attempting to retain and attract multinational corporations. We aim to open up this dichotomy between states and corporations and argue that a wealth defence industry of professional service firms plays a crucial role as intermediaries. We investigate the subsidiary structure of 27,000 MNCs and show that clients of the Big Four accounting firms show systematically higher levels of aggressive tax planning strategies than clients of smaller accounting firms. We specify this effect for three distinct strategies and also uncover marked differences across countries. As such we provide empirical evidence for the systematic involvement of auditors as intermediaries in corporate wealth defence. |
Babic, M; Garcia-Bernardo, J; Heemskerk, E M The rise of transnational state capital: state-led foreign investment in the 21st century Journal Article Review of International Political Economy, 27 (3), pp. 433-475, 2019. Abstract | Links | BibTeX | Tags: corporate power, foreign direct investment, Globalization, Ownership, state capitalism @article{Babic2019db, title = {The rise of transnational state capital: state-led foreign investment in the 21st century}, author = {M Babic and J Garcia-Bernardo and E M Heemskerk}, url = {https://www.tandfonline.com/doi/full/10.1080/09692290.2019.1665084}, doi = {https://doi.org/10.1080/09692290.2019.1665084}, year = {2019}, date = {2019-10-07}, journal = {Review of International Political Economy}, volume = {27}, number = {3}, pages = {433-475}, abstract = {Cross-border state-led investment is a recently rising, but understudied phenomenon of the global political economy. Existing research employs an anecdotal and case-oriented perspective that does not engage in a systemic, large-scale analysis of this rise of transnational state investment and its consequences for the transformation of state power in 21st century capitalism. We take a first step at filling this gap and offer two original contributions: Conceptually, we operationalize transnational foreign state-led investment on the basis of weighted ownership ties. These state capital ties are created by states as investors in corporations around the world. Empirically, we demonstrate our approach by setting up and analyzing the largest dataset on transnational state capital up to date. We show which different outward strategies states as owners employ and classify states according to their relative positions within the global network of transnational state capital. Our results illustrate a crucial aspect of the ongoing transformation of state power and sovereignty within globalization and we demonstrate how a careful and data-driven approach is able to identify different pathways and dimensions of this transformation.}, keywords = {corporate power, foreign direct investment, Globalization, Ownership, state capitalism}, pubstate = {published}, tppubtype = {article} } Cross-border state-led investment is a recently rising, but understudied phenomenon of the global political economy. Existing research employs an anecdotal and case-oriented perspective that does not engage in a systemic, large-scale analysis of this rise of transnational state investment and its consequences for the transformation of state power in 21st century capitalism. We take a first step at filling this gap and offer two original contributions: Conceptually, we operationalize transnational foreign state-led investment on the basis of weighted ownership ties. These state capital ties are created by states as investors in corporations around the world. Empirically, we demonstrate our approach by setting up and analyzing the largest dataset on transnational state capital up to date. We show which different outward strategies states as owners employ and classify states according to their relative positions within the global network of transnational state capital. Our results illustrate a crucial aspect of the ongoing transformation of state power and sovereignty within globalization and we demonstrate how a careful and data-driven approach is able to identify different pathways and dimensions of this transformation. |
2018 |
Babic, M; Heemskerk, E M; Fichtner, J Who is more powerful – states or corporations? Online The Conversation 2018. Abstract | Links | BibTeX | Tags: Globalization @online{statesorcorps, title = {Who is more powerful – states or corporations?}, author = {M Babic and E M Heemskerk and J Fichtner}, url = {http://theconversation.com/who-is-more-powerful-states-or-corporations-99616}, year = {2018}, date = {2018-07-10}, organization = {The Conversation}, abstract = {Who holds the power in international politics? Most people would probably say it’s the largest states in the global system. The current landscape of international relations seems to affirm this intuition: new Russian geopolitics, “America First” and Chinese state-led global expansion, among others, seem to put state power back in charge after decades of globalisation. Yet multinationals like Apple and Starbucks still wield phenomenal power. They oversee huge supply chains, sell products all over the world, and help mould international politics to their interests. In some respects, multinationals have governments at their beck and call – witness their consistent success at dodging tax payments. So when it comes to international politics, are states really calling the shots?}, keywords = {Globalization}, pubstate = {published}, tppubtype = {online} } Who holds the power in international politics? Most people would probably say it’s the largest states in the global system. The current landscape of international relations seems to affirm this intuition: new Russian geopolitics, “America First” and Chinese state-led global expansion, among others, seem to put state power back in charge after decades of globalisation. Yet multinationals like Apple and Starbucks still wield phenomenal power. They oversee huge supply chains, sell products all over the world, and help mould international politics to their interests. In some respects, multinationals have governments at their beck and call – witness their consistent success at dodging tax payments. So when it comes to international politics, are states really calling the shots? |
Publications
2019 |
The Wealth Defence Industry: A large-scale study on accountancy firms as profit shifting facilitators Journal Article Working paper, 2019. |
The rise of transnational state capital: state-led foreign investment in the 21st century Journal Article Review of International Political Economy, 27 (3), pp. 433-475, 2019. |
2018 |
Who is more powerful – states or corporations? Online The Conversation 2018. |