Anti-Mafia Police Actions, Criminal Firms, and Peer Firm Tax Avoidance

• 成果类型: Article
• 署名作者: Chircop, Justin; Fabrizi, Michele; Malaspina, Patrizia; Parbonetti, Antonio
• 署名单位: Lancaster University; University of Padua
• 刊物名称: JOURNAL OF ACCOUNTING RESEARCH
• ISSN/ISSBN: 0021-8456
• DOI: 10.1111/1475-679X.12455
• 发表日期: 2023
• 页码: 243-277
• 关键词: organized-crime; QUALITY

摘要

Mafia firms introduce distortions in the markets in which they operate, increasing the cost of doing business for peer firms. We investigate whether peers respond by increasing their tax avoidance and thus increasing funds available to compete with the Mafia firms. Using a sample of Italian anti-Mafia police actions that resulted in the removal of Mafia firms and a difference-in-differences approach, we find that peers reduce their tax avoidance following these actions. We further show that, following anti-Mafia police actions, peer firms improve their performance and increase capital investment while enjoying a reduction in the cost of raw materials. Overall, our results highlight the microlevel channels through which Mafia can affect firm outcomes and local economies.