The Value of Offshore Secrets : Evidence from the Panama Papers

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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Detail(s)

Original languageEnglish
Pages (from-to)4117-4155
Journal / PublicationReview of Financial Studies
Volume32
Issue number11
Online published11 Feb 2019
Publication statusPublished - Nov 2019

Abstract

We exploit one of the largest data leaks, to date, to study whether and how firms use secret offshore vehicles. From the leaked data, we identify 338 listed firms as users of secret offshore vehicles and document that these vehicles are used to finance corruption, avoid taxes, and expropriate shareholders. Overall, the leak erased $174 billion in market capitalization among implicated firms. Following the increased transparency brought about by the leak, implicated firms experience lower sales from perceptively corrupt countries and avoid less tax. We conservatively estimate that 1 in 7 firms have offshore secrets.

Research Area(s)

  • CORPORATE-TAX AVOIDANCE, CROSS-LISTINGS, FIRMS, GOVERNANCE, COMPETITION, IMPACT, THEFT, TOP, LAW

Bibliographic Note

Full text of this publication does not contain sufficient affiliation information. With consent from the author(s) concerned, the Research Unit(s) information for this record is based on the existing academic department affiliation of the author(s).

Citation Format(s)

The Value of Offshore Secrets : Evidence from the Panama Papers. / O'Donovan, James; Wagner, Hannes F.; Zeume, Stefan.

In: Review of Financial Studies, Vol. 32, No. 11, 11.2019, p. 4117-4155.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review