The attempt by corporations and individuals to evade tax imposition by moving wealth and capital to tax havens has long been a problem for governments and national economies. Tax haven investment for the purpose of tax evasion has been criticized in that it causes distortions in the distribution...

Purpose: Prior studies suggest that an informative stock price helps corporate investment decisions. Since short-selling improves the informativeness of stock prices, short-selling could influence corporate investment. This study examines this conjecture. Design/methodology/approach: Using...