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Tax havens and disclosure aggregation

Author

Listed:
  • Herita Akamah

    (University of Nebraska – Lincoln)

  • Ole-Kristian Hope

    (University of Toronto
    BI Norwegian Business School)

  • Wayne B Thomas

    (University of Oklahoma)

Abstract

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.

Suggested Citation

  • Herita Akamah & Ole-Kristian Hope & Wayne B Thomas, 2018. "Tax havens and disclosure aggregation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(1), pages 49-69, January.
    • Handle: RePEc:pal:jintbs:v:49:y:2018:i:1:d:10.1057_s41267-017-0084-x
    DOI: 10.1057/s41267-017-0084-x
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