Do Treasure Islands Create Firm Value?

Tat-kei Lai, Travis Ng

Publikation: KonferencebidragPaperForskningpeer review

Abstrakt

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

Citationsformater