Applied Mathematics and Nonlinear Sciences
Journal license

Journal

Applied Mathematics and Nonlinear Sciences


Volume
& Issue

Volume 9, Issue 1


Published
on

June 10, 2024


Pages


DOI

Article

Tax Strategy and International Financial Management of Multinational Companies

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Authors

Qisen Jin Affiliation:
Wuxi Institute of Technology, Wuxi, Jiangsu, 214121, China.
and Yu Fu Affiliation:
Wuxi Institute of Technology, Wuxi, Jiangsu, 214121, China.


Abstract

In the context of intensifying global competition, the exploration of corporate tax strategy is emerging as a pivotal area within financial management. This paper develops a flowchart for a tax planning scheme tailored to the economic strategy of multinational corporations. It examines the tax planning approaches related to enterprise financing strategy and capital operation strategy, identifying the optimal tax planning scheme based on two primary service objectives outlined in the flowchart. An empirical analysis is conducted using the case of H Communication Company to investigate the tangible benefits of its tax strategy on international financial management during its multinational operations. The results demonstrate that following tax planning, the coefficient for the cross-term of the multinational company’s earnings per share stands at 0.8340, suggesting that the market has positively received the company’s effective tax avoidance measures. This study not only advances practical research on tax planning for multinational projects but also serves as a dual theoretical and practical reference for the operations of multinational enterprises.


Keywords

Tax strategy, Financial management, Financing strategy, Tax planning, Multinational corporations, 68T05


Citation

Jin, Q. & Fu, Y. (2024). Tax strategy and international financial management of multinational companies. Applied Mathematics and Nonlinear Sciences, 9(1). https://doi.org/10.2478/amns-2024-1464

Published by: Engineering Journals

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