Do Treasure Islands Create Firm Value?

Siu Kai Choy, Tat-kei Lai

Research output: Contribution to conferencePaperResearchpeer-review


On October 11, 2011, a non-governmental organization called ActionAid published a report condemning the FTSE 100 firms for holding an unusually large number of subsidiaries in tax havens. Urging the government to take appropriate actions, the report raised the firms’ costs of holding tax haven subsidiaries. After this event, there was a 0.9% drop in cumulative abnormal returns among the non-financial firms (corresponding to about £9 billion in market capitalization), more so for better-governed firms and those with larger shares of subsidiaries in tax havens. We find some evidence that government scrutiny, reputation, and investor sentiment were plausible channels.
Original languageEnglish
Publication date2016
Number of pages51
Publication statusPublished - 2016
Event2016 Financial Management Association Annual Meeting - Las Vegas, United States
Duration: 19 Oct 201622 Oct 2016
Conference number: FMA 2016


Conference2016 Financial Management Association Annual Meeting
NumberFMA 2016
CountryUnited States
CityLas Vegas
Internet address


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

Cite this