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Managing acquired subsidiaries can be daunting. Parent and affiliate executives strive to co-create value, but fixed mindsets around subsidiary autonomy can result in diverging interests and outcomes. Through a longitudinal study of Audi’s post-acquisition integration of supercar manufacturer Lamborghini, this article provides guidance on how to manage the level of acquired subsidiary autonomy as a strategic dial that can be dynamically adjusted over time for mutual benefit. This dynamic approach to autonomy rests on three specific managerial levers—appraisal respect, organizational identity, and resource orchestration. These can enable the renewal of competitive capabilities and sustain post-acquisition success. [ABSTRACT FROM AUTHOR]

The COVID-19 pandemic affected most companies' profits negatively, but some companies did exceptionally well, recording excess profits during the pandemic. In this paper, we estimate the scale of the excess profits and the tax revenue potential of an excess profits tax, an additional tax levied by governments on companies' excess profits. To estimate excess profits, we develop a trend-adjusted average earnings methodology. We apply the methodology to firm-level consolidated Orbis data to estimate that large multinational corporations with subsidiaries in the EU generated excess profits of $447 billion in 2020 (42% of their total profits in 2020). Using country-by-country reporting data, we estimate the excess profits arising from each EU member state and find that EU member states could together raise $6 billion with an excess profits tax of 10%. [ABSTRACT FROM AUTHOR]

Entering a foreign market entails making the important mode decision of how to operate there. But the initial mode choice is not always forever and may be reassessed as business circumstances change. The mode shifting process—that is, how switches from one mode to another unfold—has scarcely been described, so we lack a systematic outline of this process. In this article, we take a first step toward such an outline. Adopting the established distinction between the formation and implementation phases of strategy making and execution, we describe the critical strategic decisions managers need to make about how to carry out a mode switch. Regarding the formation phases, we discuss the identification and consideration of entry mode switches as viable options, and whether companies plan or not for such shifts. Regarding the implementation phases, we differentiate between the integrating and collaborating decisions that define the type of switches made by companies. [ABSTRACT FROM AUTHOR]

It is not uncommon for multinational companies to establish subsidiaries outside their home countries, especially in developing regions to tap into emerging markets. It is however a different situation when multinationals establish businesses in unstable and violence-affected regions to take advantage of the local market structure that has suffered a hit by the continuous conflict. However, running a business in such regions may lead to distortion of the administration of these firms due to the violence which may destroy infrastructure and harm employees. Many firms are discouraged from investing in conflict zones because of the exposure to insecurity and violence. This paper adopts a case study and case analysis approach with an in-depth focus on the operation of a specific company and its operations in two conflict zones which resulted in distinct outcomes. In addition, a review of existing literature on the establishment and operation of a business in conflict zones was carried out to effectively examine the challenges of litigation and conflict resolution involving MTN Group as a corporate entity in Afghanistan and Northeastern Nigeria and the impact on the business operations in the respective regions. [ABSTRACT FROM AUTHOR]

The editorial "Using the difference-in-differences design with panel data in international business research: progress, potential issues, and practical suggestions" by Jiatao Li and Han Jiang discusses the popular design of causal inference in social science research known as Difference-in-Differences (DID) design. The article highlights the importance of identifying a particular event that influences some subjects but not others and compares the differences in outcomes before and after the treatment. The text emphasizes the need for caution when applying DID design with panel data, as violations of key assumptions can lead to biased estimations. Practical recommendations are provided to enhance the rigor of future research using DID design with panel data in the field of international business. [Extracted from the article]

Copyright of FinanzRundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Globalization and foreign direct investment (FDI) have made host country corruption a critical consideration for firms expanding internationally. This study investigates how perceived host country corruption influences the market entry mode choices of 207 Indonesian firms across 25 host countries between 2012-2022. Utilizing logistic regression analysis and grounded in transaction cost theory, we examine the likelihood of firms selecting joint ventures (JV) over wholly owned subsidiaries (WOS) in response to corruption risk. Results indicate that higher levels of perceived corruption in the host country significantly increase the probability of firms opting for JVs as a risk mitigation strategy. While strong country governance is often assumed to deter corruption, our findings suggest that it may not significantly reduce the perceived risk for firms entering foreign markets. This has important implications for policymakers seeking to attract foreign investment and for businesses developing strategies to navigate corrupt environments. [ABSTRACT FROM AUTHOR]

Deploying institutional theory to analyze the transfer of transgender diversity policy in Pakistan, our research highlights the crucial influence of national context with respect to the development and implementation of transgender‐supportive equality measures in multinational corporation subsidiaries. Based on semi‐structured interviews with 4 government officials, and 30 managers, HR leads, and diversity officers working in subsidiary organizations, our thematic analysis highlights how regulatory institutions, normative and cognitive institutions, and institutional distance inform the conditions of possibility for the transfer and execution of diversity policy across national boundaries. Moreover, by highlighting the inadequacy of etic understandings of diversity categories and practices in settings where social structures and ideologies can be different, we argue that utilizing an emic approach is essential in the global diversity field. Our research emphasizes the value of context‐sensitive research instead of generic, and universalistic, applications of 'Western' diversity understandings. [ABSTRACT FROM AUTHOR]

Copyright of FinanzRundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Umsatzsteuer-Rundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Umsatzsteuer-Rundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Tax haven leaks have attracted negative public attention in recent years, prompting scrutiny of corporate behavior in leaked jurisdictions. We investigate whether U.S. companies with subsidiaries in implicated tax havens change their disclosure behavior after a leak. The Offshore Leaks, Panama Papers, Bahamas Leaks, and Paradise Papers are included in this study. We analyze the leaks as separate exogenous shocks to the affected firms' behavior using a difference-in-differences approach. First, we focus on the readability of tax footnotes in annual reports. Our results suggest that tax footnotes are less readable after a firm's tax haven is implicated in a leak. This finding suggests that implicated firms try to obfuscate information and hide unethical conduct. Second, we investigate firms' disclosures of tax expenses using GAAP effective tax rates and find that companies report higher tax expenses after a leak. These changes in behavior could indicate that firms are concerned about the increasingly critical public attitude toward doing business in leaked low-tax jurisdictions and that they are taking measures to counteract possible negative reputational consequences. JEL Classification: F23, G14, H26, M41 [ABSTRACT FROM AUTHOR]

This study investigates the patterns of dual identities of host country managers working in multinational enterprise (MNE) subsidiaries and how these patterns relate to their feelings of identity-related stress within the foreign-owned firms. Drawing on the acculturation literature, we classify the patterns of dual identities based on membership in nation and organization into four identity profiles: (a) diffuse (weak national and organizational identification), (b) national (strong national and weak organizational identification), (c) organizational (weak national and strong organizational identification), and (d) integrated (strong national and organizational identification). We submit that perceived conflict between the dual identities renders MNEs' host country managers less likely to present the integrated and the organizational identity profiles and more likely to present the national identity profile than domestic firm managers. MNEs' host country managers also identify more strongly with their nation and less strongly with their organization than domestic firm managers do. The combination of strong national identification and weak organizational identification among MNEs' host country managers exposes them to greater acculturative stress within foreign organizations. The results of an analysis of a sample of 843 Korean managers working in 19 Korean firms and 60 MNE subsidiaries in Korea corroborate our hypotheses. [ABSTRACT FROM AUTHOR]

The Covid-19 pandemic has led to a decline in property prices, with the property price index dropping from 209.8 points in 2019 to 187.43 points in 2020. The property sector in Indonesia is one of the sectors affected by a significant decline. Therefore, companies need to formulate business development strategies from the three business lines to improve their performance. The purpose of the study is to analyze internal and external factors that affect the business strategy of PT XYZ and to prioritize the most effective business development strategy for the company to adopt in response to changes in the property sector. The results of this research are expected to be applied as an alternative strategy in conducting business development in the future. [ABSTRACT FROM AUTHOR]

This study aimed to identify the effects of primary and secondary stakeholders on social innovation practices in local markets by subsidiaries of multinational corporations (MNCs) and to confirm the link between social innovation and the subsidiaries' capacity to adapt to the local market. By adopting a stakeholder perspective as an overarching theoretical lens and collecting data from China—the world's largest emerging market—this study reveals the crucial catalytic role that most primary and secondary stakeholders play in enhancing social innovation by MNC subsidiaries in host countries. In addition, we provide strong evidence of a causal relationship between social innovation and adaptive capability in host economies. Our results contribute to current scholarship by identifying theoretical cornerstones and practical managerial implications of social innovation in emerging markets. [ABSTRACT FROM AUTHOR]

This research aims to analize the appointment of an ex-convict of corruption to be a Commissioner of BUMN and the subsidiary company of BUMN from a legal perspective and its implication for Good Corporate Governance Practices. The result showed that the appointment of an ex-convict of corruption to be a Commissioner of BUMN and the subsidiary company of BUMN is considered as a violation of law because it doesn’t fulfill the Integrity aspect. The violation of integrity showed that Good Corporate Governance is not fully materialized in a corporate practice, especially BUMN and the subsidiary company of BUMN. [ABSTRACT FROM AUTHOR]

Copyright of Die Unternehmensbesteuerung (Ubg) is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Corporate groups with listed subsidiaries are common around the world, despite the risks they pose to minority shareholders. Shaping a firm as a web of formally independent, minority-co-owned legal entities facilitates controllers' diversion of corporate wealth (tunnelling) via intragroup transactions and other nontransactional techniques. This Article problematizes the conventional view of groups as tunnelling-facilitating infrastructures by arguing that organizing as a group with listed subsidiaries (a minority co-owned group) may create value for all shareholders. Organizing as a minority co-owned group may increase transparency, improve performance thanks to the possibility of using stock options for subsidiaries' managers, allow for the circumvention of inefficient restrictions to dual-class shares, facilitate cross-border acquisitions, and be a second-best solution in the presence of path dependence issues preventing firms from moving from concentrated to dispersed ownership. If these are the economic rationales for having minority co-owned groups, how should the latter be regulated? In continental Europe special corporate law rules centred on a relaxation of directors' fiduciary duties within minority co-owned groups, with a view to facilitating intragroup transactions, are increasingly popular among academics and policymakers. These rules, in turn, are bound to blur the separation between the minority co-owned listed entity as an independently managed firm and other members of the corporate group. However, because the rationales for minority co-owned groups presuppose the opposite, namely a clear and transparent separation between the minority co-owned listed entity and the group, our conclusion is that stringent self-dealing rules (or at least no less stringent rules than those established for conflicted transactions other than intragroup transactions) are required for minority co-owned groups to create value for all shareholders rather than merely facilitate tunnelling. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Management & Business Research (2521-4306) is the property of Chinese Management Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Elektronik Industrie is the property of Hüthig GmbH and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Through a 21-year longitudinal study of the relationship between Italian supercar manufacturer Automobili Lamborghini and its parent, German carmaker Audi AG, we examine how a unit's degree of organizational autonomy is renegotiated over long periods of time. Using detailed empirical data, we develop a process model of the dynamics of organizational autonomy in a unit–parent relationship. This process model shows an ongoing dialectical tension between parent managers' autonomy-reduction efforts and unit managers' autonomy-extension efforts, and it reveals oscillations in the unit managers' discretion over resource-orchestration decisions. Driving this dialectic are parent managers' appraisal respect for the unit, their search for firm-wide strategic integration, and unit managers' organizational identity and concern for distinctiveness. Our process model captures concurrent feedback loops that endogenously produce these oscillations between lower and higher autonomy. We then conceptualize a harmonic domain in the unit–parent relationship, in which these oscillations persist without deviating toward amalgamation or separation. Finally, we develop a theory of change in autonomy by identifying a theoretical link between resource orchestration and specific dimensions of organizational identity. Our study highlights the dialectical, dynamic, and ongoing nature of organizational autonomy. [ABSTRACT FROM AUTHOR]

This article explores the important but unresolved issue of whether one legal entity can be vicariously liable for another legal entity's tort in a corporate group primarily based on UK law. Prior literature and case law seldom provide detailed discussion on the extended application of vicarious liability in group situations. The article aims to enrich the discussion of corporate tort liability by specifically evaluating whether the relationship between the parent and subsidiary companies could be akin to employment, and by researching whether this relationship is closely connected with the tort, subsequently leading to vicarious liability. The research findings reveal that the enterprise risk theory supports the close connection between the special relationship (the parent and subsidiary companies) and the tort in certain circumstances. However, the essential tests for the relationship requirement (namely, the control, organisation, integration, and entrepreneur tests) are difficult to meet in combination in modern group situations. [ABSTRACT FROM AUTHOR]

The article discusses the rise and success of Solar Industries India Ltd, a company that started as a low-cost mining explosive manufacturer but has since diversified into various sectors, including solar energy, defense, and infrastructure. The company's journey began in 1984 and has seen significant growth and expansion over the years. Solar Industries India Ltd has established itself as a major player in the industry, with a strong order book and a growing international presence. The article also mentions the company's stock performance and its alignment with the Indian government's Make in India initiative. The article concludes by mentioning the Strategic Partnership Model, which aims to engage the Indian private sector in the manufacture of defense equipment. [Extracted from the article]

The article discusses recent changes to construction laws regarding the reporting of "Beneficial Ownership Information" (BOI) for small business entities. The Corporate Transparency Act (CTA) requires certain entities, including corporations, LLCs, and foreign companies registered in the US, to report BOI to a federal database maintained by the US Department of Treasury. There are exemptions for certain regulated industries, but law firms and construction industry participants are not specifically exempt. The article also outlines the reporting requirements, access to information, and information security measures. However, concerns have been raised about the storage of personally identifiable information and the access to such information by enforcement agencies. [Extracted from the article]

Copyright of Journal of Community Service & Empowerment is the property of Journal of Community Service & Empowerment and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

When a corporation suffers a harm caused by its own directors or oficers, most often resulting.from a breach of fiduciary duty, and the board does not initiate litigation to remedy the alleged wrong, shareholders may fle suit on behalf ofthe corporation to redress the harm. Courts recognize this cause of action-a single derivative suit-in the name of equity, meaning equitable principles drive a court's recognition of the action. Consulting the same equitable principles, courts have extended the single derivative suit to shareholders owning shares in a corporation that owns a subsidiary, allowing these shareholders to bring "double derivative" suits on behalf of the corporation's subsidiary when the subsidiary suffers a similar harm. North Carolina's courts have not explicitly addressed whether a plaintiff may bring a double derivative claim under North Carolina law. This Comment argues that North Carolina, if given the opportunity, should recognize the double derivative suit because of the suit's equitable nature, North Carolina's receptiveness to justifying other business-related causes of action in the name of equity, and the ease at which North Carolina could statutorily recognize the cause of action. [ABSTRACT FROM AUTHOR]

Multinationals are showing a growing interest in developing corporate incubation programs. However, only a few papers analyzed this emerging topic. We conducted a study at a Brazilian multinational steel company subsidiary, aiming to elucidate the process of designing a corporate incubator through a three-phase Action Research program that spanned 12 months. As a result of this study, we offer (i) a sequential and evolutionary framework for implementing corporate incubators; (ii) an information management tool that captures and utilizes data for decision-making during venture development; and (iii) an uncertainty-based evaluation tool for venture evolution. [ABSTRACT FROM AUTHOR]

Copyright of Umsatzsteuer-Rundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

For decades, the corporate world has been dominated by "Corporate Empires." Corporate empires are conglomerates comprising a parent and tens, even hundreds, of subsidiaries. Corporate empires differ from standalone companies not only in the scale and scope of their operations, but also in the interdependencies that exist among entities in the group and the international nature of their activities. Despite this commercial reality, no unique body of law for these entities has been developed. Corporate law evolved, and continues to evolve, with the standalone company as its exclusive focal point. This legal focus has driven a wedge between the law and the business world. In this Article, we set out to fill the gap between corporate law and its largest, and arguably most important, subject matters by advancing a set of legal principles, uniquely designed for complex corporate structures. To gain an insight into this world, we collected and analyzed statistical data on the largest one hundred corporations on the S&P 500 list over five-year intervals, beginning in 2004 and ending in 2021. Building on our empirical and theoretical foundations, we advance a core set of principles for complex corporations, designed to preserve the economic benefits of conglomerate structures while minimizing the costs. Specifically, we redesign the doctrines of liability and veil-piercing in conglomerates and corporate groups, repurpose fiduciary duties in wholly owned subsidiaries, redefine oversight liability, and advance a multivariegated approach to the challenge of cross-border activities. [ABSTRACT FROM AUTHOR]

In its decision 4A_148/2023, the Swiss Federal Tribunal confirmed the principle of Article 178.3 PILA pursuant to which the validity of an arbitration agreement may not be contested on the grounds that the main contract is invalid (autonomy/separability of arbitration agreement). While incapacity to contract due to a party's minority has an impact both on the validity of the main contract and arbitration agreement, such a conclusion is not mandatory in other situations. Under Swiss law, for instance the capacity to act is a relative concept that must be assessed individually in relation to a specific act at a specific point in time. It is therefore possible that a party may have the required discernment to grasp the meaning and scope of a main contract, but not those of an arbitration agreement, and vice versa. Although the protection of a civilly incapable person is part of the public policy, a setting-aside of an arbitral award based on a violation of public policy is extremely rare. [ABSTRACT FROM AUTHOR]

Foreign direct investment (FDI) is to an increasing extent given credit for the economic development of a country along with the creation of new jobs, foreign capital, technology and knowledge transfer, generating positive spillover effects or the opportunity of joining global value chains. In the current paper the authors aim to investigate the impact of the subsidiaries of transnational companies (TNCs) which operate in Romania and carry out foreign trade activities on the trade balance of Romania during the period 2014-2022. The analysis demonstrates they generate a significant surplus in the case of services and a deficit in the case of goods, the surplus surpassing the deficit until 2018. Beginning with 2019, the high growth rate of deficits can no longer be balanced through a slower growth rate of surpluses resulting from the trade in services. Other findings reveal the sectors contributing the most to these imbalances: the manufacturing industry, telecommunications and information technology, manufacturing services and transportation generate a large surplus and trade generates a huge deficit. Data was extracted from BNR FDI annual reports, issued during 2013-2022, based on Combined Nomenclature and the IMF's Balance of Payments and International Investment Position Manual, 6th edition (BPM6) methodology. The research might be extended with the identification and evolution of TNCs at the microeconomic level, and subsequently studying the case of key multinational companies. [ABSTRACT FROM AUTHOR]

The article discusses the criteria for determining a permanent establishment in the context of VAT (Value Added Tax) law, particularly focusing on whether a subsidiary or group company can be considered a permanent establishment of its parent company. It states that the case study involves Adient Ltd & Co. KG, a German company, and its subsidiary in Romania, Adient RO, which provides processing and management services.

Copyright of FinanzRundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Die Unternehmensbesteuerung (Ubg) is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Zeitschrift für Bankrecht und Bankwirtschaft is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This article investigates the intercultural sensitivity of expatriate human resource (HR) managers, with a specific focus on training practices at an intermediate skill level. The pape, therefore, contributes to the literature on expatriates, with a specific emphasis on the particular relevance of intercultural sensitivity in training in multinational companies. Using a qualitative approach, including expert interviews with German expatriates in subsidiaries in India, China, and Mexico, combined with a deep analysis of the data, we were able to reveal the perceptions of expatriates. Our results show a mixed picture of intercultural sensitivity towards training culture in their host countries through three different types of expatriates' perceptions. Hence, our results lead to the conclusion that multinational companies might focus on this aspect by putting more emphasis on intercultural sensitivity of their HR managers in foreign subsidiaries, to improve the performance of their subsidiaries long term. [ABSTRACT FROM AUTHOR]