ARCHIVES
VOL. 9, ISSUE 4 (2024)
The impact of tax reforms on strategic alliances in multinational corporations: A comparative study
Authors
Seema Chauhan, Dr. Umesh Sharma
Abstract
This research assesses the effects of recent
tax reforms on the creation, structuring, and performance of strategic
alliances in multinational companies (MNCs). Using a quantitative method, it
analyses how changes in the taxation policy affect the cross-border alliances
with varying emphasis on three interested regions: the United States, the
European Union, and emerging economies. The objectives of the study are to
analyze how tax reforms may affect strategic alliance decision-making, compare
regional differences in this effect, and assess how tax reforms might influence
the financial performance and overall effectiveness of such alliances. The
methodology adopted has been survey-based, to which 150 respondents have been
drawn from a variety of MNCs of different industries. Descriptive statistics,
ANOVA, regression analysis, and factor analysis would be used to analyze the
data. This result indicates that the impact of tax reforms on alliance
formation and structure is significant and more pronounced for the European
Union. Regression results further indicate a positive effect of tax policy
changes on both financial performance and effectiveness of alliances while firm
size influences them as well. Three significant factors influencing the
formation of alliances have been found in this study: tax reform impact,
financial incentives, and tax policy complexity. This paper is valuable in
dissecting the role of tax reforms in shaping strategic decisions and offers
practical recommendations for MNCs operating in diverse tax environments.
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Pages:60-65
How to cite this article:
Seema Chauhan, Dr. Umesh Sharma "The impact of tax reforms on strategic alliances in multinational corporations: A comparative study". International Journal of Advanced Education and Research, Vol 9, Issue 4, 2024, Pages 60-65
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