An Event Study on the Controlled Foreign Corporation

• Main Authors: Tseng, Wen-Di, 曾玟迪
• Other Authors: Hsu, Chung-Yuan
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/7g23mc

碩士 === 國立政治大學 === 會計學系 === 107 === To reduce tax cost, many companies establish a foreign affiliated company registered in Tax Haven. As a result, countries begin implement measures against tax avoidance. For example, legislative intent of Income Tax Act Article43-3 is restricting companies avoid tax by foreign affiliated companies. This study uses “event study method” to investigate what kind of company is likely to be influenced by CFC rules. By selecting 7 specific events and estimating calculation of abnormal returns with regression analysis, it eventually show that the higher the effective tax rate is, the more the company be influenced by CFC rules.