Abstract
This paper adds a network dimension to locational theories on multinational corporate strategy to explain how tax havens and offshore financial centers (THOFC) are integrated into the structures of firms listed on five stock exchanges of the Asia-Pacific region. Applying network analysis to firm-subsidiary connections of these listed firms, it highlights differences in the connectivity structures as well as the role of THOFC in exchange subnetworks. It finds considerable variation in the complexity of corporate structures by stock exchange which can be explained by national context and multinational location strategies, and that the prevalence of THOFC within corporate structures cannot be underestimated.
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Notes
This algorithm was used to preserve the central position of nodes with a high connectivity to the core. The parameter with the best trade-off regarding disposition of the node and figure readability was selected.
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Acknowledgements
This work was supported by Australian Research Council (Grant Number DP170104359), as well as the British Engineering and Physical Sciences Research Council (Grant Number EP/N013492/1 and EP/N510129/1).
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Martinus, K., Sigler, T., Iacopini, I. et al. The role of tax havens and offshore financial centers in Asia-Pacific networks: evidence from firm-subsidiary connections. Asian Bus Manage 18, 389–411 (2019). https://doi.org/10.1057/s41291-018-00051-1
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DOI: https://doi.org/10.1057/s41291-018-00051-1