Tax havens and disclosure aggregation
Multinational firms have been accused by politicians, regulators, and citizen groups of shifting profits to low-tax geographic areas. We present evidence that multinational firms with tax-haven operations tend to aggregate their geographic disclosures to a greater extent. The results are consistent...
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Published in | Journal of international business studies Vol. 49; no. 1; pp. 49 - 69 |
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Main Authors | , , |
Format | Journal Article |
Language | English |
Published |
London
Springer Science + Business Media
01.01.2018
Palgrave Macmillan UK Palgrave Macmillan |
Subjects | |
Online Access | Get full text |
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Summary: | Multinational firms have been accused by politicians, regulators, and citizen groups of shifting profits to low-tax geographic areas. We present evidence that multinational firms with tax-haven operations tend to aggregate their geographic disclosures to a greater extent. The results are consistent with managers attempting to avoid criticism by reducing the transparency of their tax-avoidance activities. We find these results to be stronger for larger firms with higher political costs and for firms in natural-resources industries, in retail industries, or with low competition. The evidence is relevant to policymakers and others interested in multinational firms’ financial reporting and tax activities. |
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ISSN: | 0047-2506 1478-6990 |
DOI: | 10.1057/s41267-017-0084-x |