The power of financial transparency: An event study of country-by-country reporting standards

Niels Johannesen and Dan Thor Larsen

Economics Letters, 2016, vol. 145, issue C, 120-122

Abstract: 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.

Keywords: Tax evasion; Profit shifting; Multinational firms; Country-by-country reporting; Developing countries; Financial transparency (search for similar items in EconPapers)
JEL-codes: H25 H26 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (38)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:145:y:2016:i:c:p:120-122

DOI: 10.1016/j.econlet.2016.05.029

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