The Deterrence Effect of Whistleblowing

Niels Johannesen; Tim  Stolper

The Deterrence Effect of Whistleblowing

Abstract

We document that the first leak of customer information from a tax haven bank caused a signifficant decrease in the market value of Swiss banks known to be assisting with tax evasion and that the decrease was largest for the banks most strongly involved. These findings suggest that markets expected the leak to increase the perceived risk of committing and assisting with tax evasion and thus to lower both demand and supply in the market for criminal offshore banking services. This interpretation finds support in further evidence that the leak caused a sharp drop in foreign-owned deposits in tax havens.

Original language	English
Number of pages	38
Publication status	Published - 2017

Series	EPRU Working Paper Series
Number	1
Volume	2017
ISSN	0908-7745

Keywords

Faculty of Social Sciences
whistleblowing
economic crime
tax evasion
tax havens

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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http://web.econ.ku.dk/eprn_epru/Workings_Papers/WP-2017-01.pdf

Cite this

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The Deterrence Effect of Whistleblowing

Abstract

Keywords

UN SDGs

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