Corporate Tax Havens and Transparency

Research output: Contribution to journal › Editorial › Research › peer-review

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Corporate Tax Havens and Transparency. / Bennedsen, Morten; Zeume, Stefan.

In: The Review of Financial Studies, Vol. 31, No. 4, 02.11.2017, p. 1221-1264.

Research output: Contribution to journal › Editorial › Research › peer-review

Harvard

Bennedsen, M & Zeume, S 2017, 'Corporate Tax Havens and Transparency', The Review of Financial Studies, vol. 31, no. 4, pp. 1221-1264. https://doi.org/10.1093/rfs/hhx122

APA

Bennedsen, M., & Zeume, S. (2017). Corporate Tax Havens and Transparency. The Review of Financial Studies, 31(4), 1221-1264. https://doi.org/10.1093/rfs/hhx122

Vancouver

Bennedsen M, Zeume S. Corporate Tax Havens and Transparency. The Review of Financial Studies. 2017 Nov 2;31(4):1221-1264. https://doi.org/10.1093/rfs/hhx122

Author

Bennedsen, Morten ; Zeume, Stefan. / Corporate Tax Havens and Transparency. In: The Review of Financial Studies. 2017 ; Vol. 31, No. 4. pp. 1221-1264.

Bibtex

@article{d554bcf2957443d081e902874e57b523,
title = "Corporate Tax Havens and Transparency",
abstract = "We investigate shareholders{\textquoteright} reactions to the increased transparency of corporate tax haven activities in a hand-collected subsidiary data set covering 17,331 publicly listed firms in 52 countries. An increase in transparency through the staggered signing of bilateral tax information exchange agreements (TIEAs) between home countries and tax havens is associated with a 2.5% increase in the value of affected firms. The results are stronger for firms with more complex tax haven structures and weakly governed firms. Furthermore, firms that respond to TIEAs by haven hopping (i.e., they move subsidiaries from affected to nonaffected tax havens) do not experience an increase in firm value. These results are consistent with tax havens being used for expropriation activities that extend beyond pure tax-saving activities.",
keywords = "Faculty of Social Sciences",
author = "Morten Bennedsen and Stefan Zeume",
year = "2017",
month = nov,
day = "2",
doi = "10.1093/rfs/hhx122",
language = "English",
volume = "31",
pages = "1221--1264",
journal = "The Review of Financial Studies",
issn = "0893-9454",
publisher = "Oxford University Press",
number = "4",

}

RIS

TY - JOUR

T1 - Corporate Tax Havens and Transparency

AU - Bennedsen, Morten

AU - Zeume, Stefan

PY - 2017/11/2

Y1 - 2017/11/2

N2 - We investigate shareholders’ reactions to the increased transparency of corporate tax haven activities in a hand-collected subsidiary data set covering 17,331 publicly listed firms in 52 countries. An increase in transparency through the staggered signing of bilateral tax information exchange agreements (TIEAs) between home countries and tax havens is associated with a 2.5% increase in the value of affected firms. The results are stronger for firms with more complex tax haven structures and weakly governed firms. Furthermore, firms that respond to TIEAs by haven hopping (i.e., they move subsidiaries from affected to nonaffected tax havens) do not experience an increase in firm value. These results are consistent with tax havens being used for expropriation activities that extend beyond pure tax-saving activities.

AB - We investigate shareholders’ reactions to the increased transparency of corporate tax haven activities in a hand-collected subsidiary data set covering 17,331 publicly listed firms in 52 countries. An increase in transparency through the staggered signing of bilateral tax information exchange agreements (TIEAs) between home countries and tax havens is associated with a 2.5% increase in the value of affected firms. The results are stronger for firms with more complex tax haven structures and weakly governed firms. Furthermore, firms that respond to TIEAs by haven hopping (i.e., they move subsidiaries from affected to nonaffected tax havens) do not experience an increase in firm value. These results are consistent with tax havens being used for expropriation activities that extend beyond pure tax-saving activities.

KW - Faculty of Social Sciences

U2 - 10.1093/rfs/hhx122

DO - 10.1093/rfs/hhx122

M3 - Editorial

VL - 31

SP - 1221

EP - 1264

JO - The Review of Financial Studies

JF - The Review of Financial Studies

SN - 0893-9454

IS - 4

ER -

ID: 196471629