Liberating Trapped Cash: A Case Study of Apple and Microsoft

Authors

  • Russell Paul Engel Southern Connecticut State University
  • Bridget Lyons Sacred Heart University
  • Danny Pannese Sacred Heart University

Abstract

The topic of trapped cash, or cash permanently reinvested overseas to avoid tax upon repatriation, has become a hot topic in accounting, finance and policy circles over the past two years. This case study analyzes the activities of two major technology firms, Microsoft and Apple, to liberate enormous holdings of trapped cash. The case prompts a discussion of the topic of trapped cash, stakeholder considerations and tools available to manage cash balances held outside the United States. The focus is to examine the strategies available and those selected by Microsoft and Apple to meet or at least appease stakeholder demands while freeing trapped cash.

Author Biographies

  • Russell Paul Engel, Southern Connecticut State University
    Associate Professor of Accounting
  • Bridget Lyons, Sacred Heart University
    Professor of Finance
  • Danny Pannese, Sacred Heart University
    Associate Professor of Accounting

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Published

2017-01-13

Issue

Section

Articles

How to Cite

Liberating Trapped Cash: A Case Study of Apple and Microsoft. (2017). The Accounting Educators’ Journal, 26. https://www.aejournal.com/ojs/index.php/aej/article/view/320