Abstract
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 language | English |
|---|---|
| Publication date | 2016 |
| Number of pages | 51 |
| Publication status | Published - 2016 |
| Event | 2016 Financial Management Association Annual Meeting - Las Vegas, United States Duration: 19 Oct 2016 → 22 Oct 2016 Conference number: FMA 2016 http://fmaconferences.org/Vegas/VegasProgram.htm |
Conference
| Conference | 2016 Financial Management Association Annual Meeting |
|---|---|
| Number | FMA 2016 |
| Country/Territory | United States |
| City | Las Vegas |
| Period | 19/10/2016 → 22/10/2016 |
| Internet address |
Keywords
- Tax havens
- Firm value
- Corporate governance
- Corporate tax
- Event study