Do Treasure Islands Create Firm Value?

Tat-kei Lai, Travis Ng

Publikation: KonferencebidragPaperForskningpeer review

Resumé

They do! Otherwise, their use would not have been so prevalent among firms. How
much firm value they create, however, is still an open question. Exploiting a political
event in the U.K. that suddenly raised the cost of using tax havens, we find that
there was a 0.87% reduction in cumulative abnormal return (CAR) among the sampled
firms, corresponding to about £532 million in market capitalization. The firms
of stronger corporate governance registered a stronger reduction in CAR. A simple
linear extrapolation suggests that the firm value contributed by tax havens can be as
much as £31 billion.
OriginalsprogEngelsk
Publikationsdato30 sep. 2014
Antal sider37
StatusUdgivet - 30 sep. 2014
BegivenhedThe 2014 Meeting of the Canadian Law and Economics Association - University of Toronto, Toronto, Canada
Varighed: 19 sep. 201420 sep. 2014
http://www.canlecon.org/index.php/CLEA/CLEA2014

Konference

KonferenceThe 2014 Meeting of the Canadian Law and Economics Association
LokationUniversity of Toronto
LandCanada
ByToronto
Periode19/09/201420/09/2014
Internetadresse

Emneord

  • Tax havens
  • Firm value
  • Corporate governance
  • Corporate tax
  • Event study

Citer dette

Lai, T., & Ng, T. (2014). Do Treasure Islands Create Firm Value?. Afhandling præsenteret på The 2014 Meeting of the Canadian Law and Economics Association, Toronto, Canada.
Lai, Tat-kei ; Ng, Travis. / Do Treasure Islands Create Firm Value?. Afhandling præsenteret på The 2014 Meeting of the Canadian Law and Economics Association, Toronto, Canada.37 s.
@conference{05d3c1ea89c144a5bebf2a8b41aeb0b4,
title = "Do Treasure Islands Create Firm Value?",
abstract = "They do! Otherwise, their use would not have been so prevalent among firms. Howmuch firm value they create, however, is still an open question. Exploiting a politicalevent in the U.K. that suddenly raised the cost of using tax havens, we find thatthere was a 0.87{\%} reduction in cumulative abnormal return (CAR) among the sampledfirms, corresponding to about £532 million in market capitalization. The firmsof stronger corporate governance registered a stronger reduction in CAR. A simplelinear extrapolation suggests that the firm value contributed by tax havens can be asmuch as £31 billion.",
keywords = "Tax havens, Firm value, Corporate governance, Corporate tax, Event study",
author = "Tat-kei Lai and Travis Ng",
year = "2014",
month = "9",
day = "30",
language = "English",
note = "null ; Conference date: 19-09-2014 Through 20-09-2014",
url = "http://www.canlecon.org/index.php/CLEA/CLEA2014",

}

Lai, T & Ng, T 2014, 'Do Treasure Islands Create Firm Value?' Paper fremlagt ved The 2014 Meeting of the Canadian Law and Economics Association, Toronto, Canada, 19/09/2014 - 20/09/2014, .

Do Treasure Islands Create Firm Value? / Lai, Tat-kei; Ng, Travis.

2014. Afhandling præsenteret på The 2014 Meeting of the Canadian Law and Economics Association, Toronto, Canada.

Publikation: KonferencebidragPaperForskningpeer review

TY - CONF

T1 - Do Treasure Islands Create Firm Value?

AU - Lai, Tat-kei

AU - Ng, Travis

PY - 2014/9/30

Y1 - 2014/9/30

N2 - They do! Otherwise, their use would not have been so prevalent among firms. Howmuch firm value they create, however, is still an open question. Exploiting a politicalevent in the U.K. that suddenly raised the cost of using tax havens, we find thatthere was a 0.87% reduction in cumulative abnormal return (CAR) among the sampledfirms, corresponding to about £532 million in market capitalization. The firmsof stronger corporate governance registered a stronger reduction in CAR. A simplelinear extrapolation suggests that the firm value contributed by tax havens can be asmuch as £31 billion.

AB - They do! Otherwise, their use would not have been so prevalent among firms. Howmuch firm value they create, however, is still an open question. Exploiting a politicalevent in the U.K. that suddenly raised the cost of using tax havens, we find thatthere was a 0.87% reduction in cumulative abnormal return (CAR) among the sampledfirms, corresponding to about £532 million in market capitalization. The firmsof stronger corporate governance registered a stronger reduction in CAR. A simplelinear extrapolation suggests that the firm value contributed by tax havens can be asmuch as £31 billion.

KW - Tax havens

KW - Firm value

KW - Corporate governance

KW - Corporate tax

KW - Event study

M3 - Paper

ER -

Lai T, Ng T. Do Treasure Islands Create Firm Value?. 2014. Afhandling præsenteret på The 2014 Meeting of the Canadian Law and Economics Association, Toronto, Canada.