The purpose of this study was to describe the influence of living with an ostomy on sleep disruptions using data from a self-reported survey and multinational clinical registry of individuals living with an ostomy. Cross-sectional survey and clinical registry. Survey data were collected from 5648 respondents living in the US with an ostomy, using any manufacturer's product; these data were collected from October 2021 to April 2022. In addition, clinical registry data were extracted from 206 respondents living in the UK, US, and Canada, using all data available as of December 2022. An electronic survey focusing on sleep was distributed through an industry-sponsored ostomy patient support program, product supply distributor, and ostomy patient association. Participation was anonymous, voluntary, and without compensation. Participants in the multinational registry completed monthly or quarterly electronic questionnaires that included information on sleep quality and sleep disruptions. Inferential analyses were conducted using Fisher exact test and chi-square test (χ2). Nearly half of the Sleep Survey respondents (n=2676 of 5648, 47%) reported their pouching system had disrupted their main sleep period over the past 30days. Seventy-five percent (n=1845) experienced disruptions weekly, and 31% (n=760) reported nightly sleep disruptions. Common causes included the need to empty a pouch (64%, n =1722), leakage of effluent (40%, n =1068), and worry about pouching system leakage (25%, n =677). Respondents reporting peristomal skin problems were 1.5 times more likely to experience sleep disruptions (P < .001), while individuals with ileostomies were 1.3 and 1.6 times more likely to report disruptions compared to individuals with colostomies and urostomies, respectively (P < .001). The proportion of registry respondents who reported sleep disruptions in the preceding 30days was 39% (n=79). A vast majority (96%, n =76) reported being bothered by these sleep disruptions. The prevalence of sleep disruptions among individuals living with an ostomy is high, especially for those living with an ileostomy.

“Diplomacy at Work: The South African Worker, U.S. Multinationals, and Transnational Racial Solidarity” examines the history of corporate reform and anti-apartheid activism through the lens of South African labor and global worker movements. It argues that Black workers in apartheid South Africa repurposed U.S. corporate codes—especially the Sullivan Principles—as instruments of resistance. The labor movement transformed reformist rhetoric into tools for collective action and transnational worker solidarity. Drawing on oral histories, trade union archives, corporate reports, and government records in both the United States and South Africa, the dissertation reveals how workers used weak corporate reforms to pressure multinational companies, connect with U.S. labor allies, and challenge the violence of apartheid from the shop-floor. In doing so, it bridges business, labor, and diplomatic history to show that workers helped shape global debates over corporate ethics and U.S. foreign policy in the late Cold War era. Diplomacy at Work thus recasts South African labor as a central force in the transnational struggle against apartheid.

ABSTRACTThis study is motivated by the prevalence of corruption and the inevitability of some firms operating in corrupt regions. It aims to explore whether and how firms can gain financially from operating in such environments. By analyzing a sample of 3865 US firms, we find that those with higher corruption exposure are more likely to operate in Africa. Further, compared with firms not operating in Africa, those with greater exposure to corruption and operations in Africa experience higher returns. This finding is consistent across univariate analysis, portfolio analysis, and regression analysis. Further investigations reveal that other cultural traits such as trust and egalitarianism also influence stock values. While some corporate governance may mitigate the corruption impact, other channels suggested in the literature do not seem to have impact. However, even after considering these factors, the positive valuation effect of corruption exposure remains significant. These results imply that, in certain contexts, firm exposure to corruption may benefit shareholders. Therefore, instead of simply adhering to a higher standard of conduct imposed in the home country, a firm's familiarity with and adaptation to the local culture where it operates seems to be also crucial to its foreign operations.

Tax avoidance as an R&amp;D subsidy: the use of cost sharing agreements by US multinationals

ABSTRACTThis study examines the effects of international diversification on the operating and market performance of US multinationals, using foreign fixed assets as a proxy for the degree of international diversification. We measure performance on multiple dimensions: stock price, stock returns, operating income, and operating cash flows. We posit a nonlinear association between diversification and our financial performance measures and test this by conducting two complementary analyses: an initial test based on a linear model and a second test based on a quadratic specification. Our results suggest a negative association in the quadratic model, consistent with prior work that suggests overexpansion of foreign investment decreases operating performance and lowers firm value. Overall, the evidence suggests that the assumed linear dynamics used in prior research appear to be an incomplete tool to describe the relation between firms’ foreign expansion and firm performance.

This study provides the first evidence of the propensity of globally large industrial US and European firms to adopt enterprise risk management (ERM) processes in response to the recent challenges of systematic global risks associated with pandemics (COVID-19), increased geopolitical risks (e.g., the Ukraine–Russia conflict), increased cybersecurity threats and the challenges posed by climate change and biodiversity loss. Consistent with the predictions of standard risk management theory, it is predicted that there is a positive inter-relationship between the propensity to adopt ERM and total firm risk, after controlling for various firm-related financial characteristics, complexity and sources of idiosyncratic risk. The empirical research is based on an industry-matched sample of the 100 largest US and European firms globally. The empirical results are generally consistent with these predictions, but for European firms, total firm risk is not associated with ERM adoption. Furthermore, there is no statistically significant relationship between sample firms’ risk-adjusted performance and their ERM adoption propensity, and there are also significant cultural–institutional variations that explain the differences between the ERM adoption practices between US and European sub-sample firms. The findings raise new questions about the validity of ERM in addressing globally important risk challenges faced by the largest multinational firms.

In this paper, we investigate tax avoidance of MNEs through profit shifting to tax havens. Using macro data from US MNEs, we analyze at the host country level where US affiliates book their profits and where their actual production activities take place. We find that the effect of the corporate tax on excess profits is conditional on whether the host country is considered to be a tax haven. Among tax haven host countries, a difference of 1% in the corporate tax is associated with a change of 8-15% in excess profits, while the relationship between corporate tax and excess profits is statistically indistinguishable from zero among countries that do not have the tax haven reputation. Our results clearly indicate that US affiliates have strong incentives to allocate their profits away from their actual production and specifically in jurisdictions that are widely identified or perceived as tax havens.

This article examines the adoption practices of Enterprise Risk Management (ERM) within US and European multinational corporations. It synthesizes academic literature and regulatory guidelines to identify the key drivers, benefits, challenges, and regional nuances influencing ERM implementation. Findings indicate that US adoption has historically been driven by financial regulations like Sarbanes-Oxley, emphasizing internal controls and financial risk management. Conversely, European adoption is increasingly integrating Environmental, Social, and Governance (ESG) risks, propelled by directives such as the Corporate Sustainability Reporting Directive (CSRD). While ERM demonstrably enhances firm value and performance by optimizing capital allocation and reducing earnings volatility, challenges persist in achieving full integration and moving beyond mere compliance. The discussion highlights the strategic imperative of ERM in a complex global landscape, emphasizing the need for agile and deeply embedded risk management practices, and considers the implications of various firm-specific and macroeconomic factors on ERM propensity and total firm risk.

The US Congress will soon consider whether to extend the tax cuts enacted in the 2017 Tax Cuts &amp; Jobs Act that are set to expire at the end of 2025. One of those expiring tax cuts grants a preferential tax rate for Foreign-Derived Intangible Income (FDII), earned by US multinationals. In this Talking Points, Zorka Milin explains how FDII has enabled Big Tech companies to reap billions of dollars in tax benefits and suggests that the enormous revenue loss to the US Treasury is not worth the benefits that were promised but not realized.

Ireland’s experience as an enthusiastic founder member of the euro area in 1999 has been characterised by several distinct phases. The initial years of membership saw a continuation of the unprecedented Celtic Tiger “boom” of the 1990s, largely driven by direct investment inflows of US multinationals. However, as the decade wore on, Irish policy makers permitted the emergence of a property bubble along with a massive surge in government expenditures. With the onset of worldwide financial turbulence in 2008, Ireland was plunged into the worst economic and financial crisis in its history, requiring an emergency bail out from the EU, the IMF, and the European Central Bank (ECB). However, following the successful implementation of the associated adjustment programme, Ireland has experienced a highly impressive economic and financial recovery. This paper reviews events leading up to and during and after the 2008/2009 crisis, with particular reference to the impact of Ireland’s euro zone membership and lessons that might be drawn from this experience.

Tax Avoidance as an R&amp;amp;D Subsidy: The Use of Cost Sharing Agreements by US Multinationals

There has been a recent proposal in the United States to codify the arm`s length standard (ALS), which is currently only found in regulations as well as in US treaties. This article argues that this proposal is misguided because as long as the ALS is not codified, the US is free to adopt Pillar 1 without changing its domestic tax law by ratifying the Multilateral Tax Convention (MLC). Moreover, the history of the ALS from when it was first introduced in the 1932 US-France tax treaty shows that it was always intended to protect the interests of US multinationals at the expense of the fisc, and should be discarded.

This second AIB Insights issue of 2024 contains four articles that address diverse topics: opportunities and challenges for emerging markets based on the case of Bangladesh, using domestic cultural communities to design a multicultural marketing strategy, the emerging metaverse and its implications for international business, and changing international R&amp;D investments of US multinationals. We also briefly review our recent, first-ever stand-alone paper development workshop, held in Nairobi, Kenya.

2021 was the first year in which US multinationals abroad spent more on R&amp;D in services than in manufacturing. This reflects a fundamental shift in the R&amp;D activities of US MNEs, and in our perceptions of R&amp;D internationalization. Information, software, business, and scientific services have displaced automotive or pharmaceuticals as the main R&amp;D investing industries. This shift also changes the relative importance of host countries; the European Union, with its specialization on manufacturing, is losing ground against Asian economies, but also other OECD countries.

Abstract This paper examines the impact of protectionism and intellectual property right (IPR) protection in host markets on cross-border mergers and acquisitions (CB M&amp;As). CB M&amp;As have become important vehicles for firms to expand into foreign markets and acquire strategic assets. In recent years, the topic has attracted significant scholarly interest. Recently, many countries have enacted protectionist measures to protect local firms and jobs. Consequently, the impact such measures have on economic activities is under debate in the literature. This study leverages the vital context of CB M&amp;As undertaken by US multinational enterprises (MNEs) between 2011 and 2017 in 49 host countries. The findings indicate that host country IPR protection has a much more substantial and positive impact on CB M&amp;A activities undertaken by USA MNEs than the protectionist policies of the host country by itself. The findings further suggest that, although local protectionism, by itself, does not play a significant role in CB M&amp;As, its presence strengthens the positive effect of IPR protection on CB M&amp;A activities in the host country, thereby supporting the contingent role of such protection. These findings have important implications for research, practice, and policy.

The announcement that the Federal Reserve may announce its eighth interest rate hike in almost a year on 23 March 2023. The trend of international capital flows to the U.S. has become more pronounced. However, this is a double-edged sword for U.S. multinationals. The entry of international capital into the U.S. may contribute to a more prosperous U.S. financial market. However, at the same time, a higher dollar exchange rate means that multinationals' revenues may fall. This paper, therefore, chooses to analyse Tesla, one of the most representative US multinationals. A VAR and an ARMA-GARCH model are used to analyse Tesla's share price movement and the U.S. dollar index futures price movement. This paper finds a correlation between the U.S. dollar index futures price and Tesla's share price. Based on the results of this paper, investors can adjust their investment decisions in Tesla stock based on the following Federal Reserve policy.

Abstract The US often portrays human rights to be Western values America cherishes. But what happens when American corporations abuse human rights transnationally? While a decade ago, the US could be considered to be one of the most advanced jurisdictions in terms of business and human rights litigation, now it is no longer the case. The US Judicial, Legislative and Executive branches all appear to be behind a number of other countries in terms of ensuring that domestic corporations respect human rights and the environment transnationally. In the past decade, US courts have substantially limited the possibility of suing corporations for transnational torts; US lawmakers have failed to adopt a mandatory due diligence law of general application requiring US multinationals to oversee and prevent human rights and environmental abuses in their supply chains; and the US Government, under three separate administrations (the Obama, Trump and Biden) have consistently opposed a UN treaty initiative for the Elaboration of an international legally binding instrument on transnational corporations and other business enterprises with respect to human rights. Is this negative trend reversible?

Abstract Research SummaryWe investigate how the presence of populist rulers affects foreign direct investment in democratic countries. Our analysis sheds light on the mechanisms by which this political force impacts firms' decisions, considering the effect of institutions and internationalization strategies at the firm level in the global arena. We test our theory using instrumental variables with a panel dataset of US multinationals in 37 democratic countries between 1999 and 2020. Our findings suggest that the presence of a populist ruler at the helm of government seems to undermine firms' foreign investment and it is potentially moderated by country‐level institutions and firm‐level internationalization. Collectively, our results offer new insights on how populism affects multinationals' investment decisions, contributing to the literature that examines the relationship between political pressure and investment decisions.Managerial SummaryInvesting in countries with populist rulers poses a challenge for multinationals. Populist leaders constantly threaten to abruptly change the institutions that provide certainty for foreign investments. This study argues that the presence of a populist negatively affects firms' foreign investment, moderated by institutions and internationalization strategies. The adverse impacts of populism on investment are mitigated in countries with robust institutional frameworks. In such cases, the credibility of populists' promises to alter the established “rules of the game” is lower than in countries with weaker institutions. Additionally, by expanding their degree of internationalization, firms are better equipped to navigate the lack of information generated by populist rulers. Our research provides implications for managers in assessing the risks and opportunities associated with investing in such contexts.

Abstract We quantify the immediate net effect of the Tax Cuts and Jobs Act (TCJA) on the tax burden of corporate profits for public US corporations. We find similar reductions in effective tax rates for domestic and multinational firms, yet the entirety of multinational tax savings stemmed from tax savings on their domestic, not foreign, earnings. We find no significant change in the federal tax burden on foreign earnings neither on average norspecifically for firms most likely to be subject to new anti‐abuse provisions. We find some evidence that firms not targeted by anti‐abuse provisions saw reductions in their federal tax burden on foreign income. Overall, while the tax burden on domestic income decreased significantly, our findings suggest the tax burden on the foreign earnings of US multinationals is largely unaffected despite the overhaul of the international tax system. Importantly for US multinationals' investment decisions, while foreign income was heavily tax‐favored prior to tax reform, we find that foreign and domestic incomes are similarly taxed after TCJA enactment.

Abstract We document a robust relation between corporate tax differentials and US international financial integration (IFI). While this is the case for traditional IFI based on cross-border positions, the positive link also emerges for its larger consolidated-by-nationality version. The gap between these IFI measures, the key outcome variable in our analysis, exhibits a strong positive correlation with tax differentials too. This is in part due to consolidated assets of multinational enterprises being more strongly correlated with tax differentials than their cross-border counterpart. We interpret this as indirect evidence of US multinationals taking advantage of tax differentials in ways that go beyond what is captured by traditional Balance of Payments procedures. JEL: F36, F21, F23, H87.