Cash holdings, tax policies, and institutional environments of innovative enterprises

We discover a positive association between a firm's innovativeness and its cash holdings using data from 11,653 innovative enterprises in 51 non-US economies. This relationship is even stronger now that patent boxes have been implemented, which provide preferential tax treatment for patent income. Additionally, creative multinationals that face increased repatriation taxes amass larger total cash holdings. The positive innovativeness–cash relationship is more pronounced in countries with higher R&D tax credits, less developed financial markets, stronger governance, stronger shareholder rights, more technicians, better infrastructure, and greater investment freedom, as well as in industries with fiercer competition and longer innovation cycles. Innovative organizations with greater cash on hand invest more in research and development and generate more patents. In general, our findings shed light on the factors that contribute to the massive wealth buildup in creative enterprises globally.

Related Party Transactions mit kontrollierenden Aktionären

With the adoption of the new Shareholder Rights Directive, the European legislator has, after an intensive debate, enacted harmonized rules for the regulation of Related Party Transactions, which have been incorporated into German law with the implementation of the ARUG II. This thesis takes a critical look at the new regulatory concept by first elaborating the over-positive aspects of the regulation of Related Party Transactions and then evaluating the European rules and their national implementation against the background of a comparative legal analysis of previous institutions under German and British law.