Expropriations, Property Confiscations and New Offshore Entities: Evidence from the Panama Papers

• Tác giả: Ralph-Christopher Bayer, Roland Hodler, Paul Raschky, Anthony Strittmatter
• Ngôn ngữ: eng
• Ký hiệu phân loại: 336.206 Provisions that allow tax avoidance
• Thông tin xuất bản: 2018
• Bộ sưu tập: Metadata
• ID: 162315

Tóm tắt

Using the Panama Papers, we show that the beginning of media reporting on expropriations and property confiscations in a country increases the probability that offshore entities are incorporated by agents from the same country in the same month. This result is robust to the use of country-year fixed effects and the exclusion of tax havens. Further analysis shows that the effect is driven by countries with non-corrupt and effective governments, which supports the notion that offshore entities are incorporated when reasonably well-intended and well-functioning governments become more serious about fighting organized crime by confiscating proceeds of crime.