The Power of Financial Transparency: An Event Study of Country-by-Country Reporting Standards

TY - JOUR

T1 - The Power of Financial Transparency

T2 - An Event Study of Country-by-Country Reporting Standards

AU - Johannesen, Niels

AU - Larsen, Dan

PY - 2016/8/1

Y1 - 2016/8/1

N2 - We show that recent European legislation requiring oil, gas and mining companies to disclose their tax payments on a country-by-country basis was associated with significant decreases in firm value. This suggests that tax evasion creates considerable rents for firms in extractive industries and that disclosure rules have the potential to reduce these rents.

AB - We show that recent European legislation requiring oil, gas and mining companies to disclose their tax payments on a country-by-country basis was associated with significant decreases in firm value. This suggests that tax evasion creates considerable rents for firms in extractive industries and that disclosure rules have the potential to reduce these rents.

KW - Faculty of Social Sciences

KW - Tax evasion

KW - Profit shifting

KW - Multinational firms

KW - Country-by-country reporting

KW - Developing countries

KW - Financial transparency

KW - H25

KW - H26

U2 - 10.1016/j.econlet.2016.05.029

DO - 10.1016/j.econlet.2016.05.029

M3 - Letter

SN - 0165-1765

VL - 145

SP - 120

EP - 122

JO - Economics Letters

JF - Economics Letters

ER -