The Value of Offshore Secrets: Evidence from the Panama Papers

• 成果类型: Article
• 署名作者: O'Donovan, James; Wagner, Hannes F.; Zeume, Stefan
• 署名单位: City University of Hong Kong; Bocconi University; University of Michigan System; University of Michigan
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhz017
• 发表日期: 2019
• 页码: 4117
• 关键词: CORPORATE-TAX AVOIDANCE; cross-listings; FIRMS; governance; COMPETITION; IMPACT; theft; top; LAW

摘要

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.