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.
| Original language | English |
|---|---|
| Pages (from-to) | 4117-4155 |
| Journal | Review of Financial Studies |
| Volume | 32 |
| Issue number | 11 |
| Online published | 11 Feb 2019 |
| DOIs | |
| Publication status | Published - Nov 2019 |
Bibliographical 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).Research Keywords
- CORPORATE-TAX AVOIDANCE
- CROSS-LISTINGS
- FIRMS
- GOVERNANCE
- COMPETITION
- IMPACT
- THEFT
- TOP
- LAW
