An Analysis of Chinese Multinationals' Use of Tax Havens

In this paper it is sought to analyse the use of tax havens by Chinese MNEs. Employing a sample of 100 listed companies – selected amongst China's 1,078 largest firms – , the research focuses on the identification of significant MNEs' characteristics linked to the use of tax havens. Result...

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Main Author: Leotta, Laura
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2012
Online Access:https://eprints.nottingham.ac.uk/26180/
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author Leotta, Laura
author_facet Leotta, Laura
author_sort Leotta, Laura
building Nottingham Research Data Repository
collection Online Access
description In this paper it is sought to analyse the use of tax havens by Chinese MNEs. Employing a sample of 100 listed companies – selected amongst China's 1,078 largest firms – , the research focuses on the identification of significant MNEs' characteristics linked to the use of tax havens. Results suggest that among listed companies differences exist between SOEs and private companies' behaviour, distinguishing them in terms of place of incorporation, location of tax-haven affiliates, reported profits (as a percentage) of total revenues, and amount of intra-firm transactions. Sector-wise, the companies seem to follow the same tendency of other traditional MNEs, as firms operating in the services and high-tech sectors are found more prone to the use tax havens. The pervasive employment of affiliates located in low-tax jurisdictions (especially those in dot-tax havens) are considered in line with the overall business strategy pursued by emerging Chinese MNEs, which entails the construction of sustainable comparative advantage based on low costs in order to enlarge their presence at global level leveraging non-traditional factors.
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spelling nottingham-261802017-10-19T14:19:46Z https://eprints.nottingham.ac.uk/26180/ An Analysis of Chinese Multinationals' Use of Tax Havens Leotta, Laura In this paper it is sought to analyse the use of tax havens by Chinese MNEs. Employing a sample of 100 listed companies – selected amongst China's 1,078 largest firms – , the research focuses on the identification of significant MNEs' characteristics linked to the use of tax havens. Results suggest that among listed companies differences exist between SOEs and private companies' behaviour, distinguishing them in terms of place of incorporation, location of tax-haven affiliates, reported profits (as a percentage) of total revenues, and amount of intra-firm transactions. Sector-wise, the companies seem to follow the same tendency of other traditional MNEs, as firms operating in the services and high-tech sectors are found more prone to the use tax havens. The pervasive employment of affiliates located in low-tax jurisdictions (especially those in dot-tax havens) are considered in line with the overall business strategy pursued by emerging Chinese MNEs, which entails the construction of sustainable comparative advantage based on low costs in order to enlarge their presence at global level leveraging non-traditional factors. 2012-10-05 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/26180/1/Laura_Leotta_-_Dissertation_2012.pdf Leotta, Laura (2012) An Analysis of Chinese Multinationals' Use of Tax Havens. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Leotta, Laura
An Analysis of Chinese Multinationals' Use of Tax Havens
title An Analysis of Chinese Multinationals' Use of Tax Havens
title_full An Analysis of Chinese Multinationals' Use of Tax Havens
title_fullStr An Analysis of Chinese Multinationals' Use of Tax Havens
title_full_unstemmed An Analysis of Chinese Multinationals' Use of Tax Havens
title_short An Analysis of Chinese Multinationals' Use of Tax Havens
title_sort analysis of chinese multinationals' use of tax havens
url https://eprints.nottingham.ac.uk/26180/