This paper uses international trade data to investigate the extent to which firms evade taxes on corporate profits. Discrepancies between reports by importers and exporters of the same trade flow are used to indirectly estimate the extent of evasion. When a tax rate changes in one country, firms...

This paper builds on recent insights from network theory and on the rich dataset made available by the Panama Papers in order to investigate the micro-economic dynamics of tax-evasion. We model offshore financial entities documented in the Panama Papers as links between jurisdictions in the...

Tax evasion is universal. It depends on the economic and tax structures, types of income, and social attitudes. The theory of tax evasion has limitations since it depends solely on the attitude toward risk with full information regarding the tax administration`s behavior. Methodologies for...

We document that the first leak of customer information from a tax haven bank caused a significant 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...

We document that the first leak of customer information from a tax haven bank caused a significant 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...

Recent efforts to reduce international tax evasion focus on information exchange with tax havens. Using bilateral bank data for 1,397 country pairs in a balanced quarterly panel from 2003:I – 2017:IV, we first show that information-on-request treaties with tax havens reduce bank deposits in...

This study examines whether foreign institutional investors (FIIs) help explain variation in corporate tax avoidance and whether mechanisms such as tax morality, investment horizon, and corporate governance underlie the relation between FIIs and tax avoidance. We find robust evidence that FIIs...

Using an international sample of firms from 25 countries and a country-level index for societal trust, we document that societal trust is negatively associated with tax avoidance, even after controlling for other institutional determinants such as home country legal institutions and tax system...

Motivated by two competing views on the value implications of tax avoidance, this study examines how investors perceive tax avoidance behavior in an international setting. Using a sample of 42,107 firm-year observations from 46 countries over the 2001-2010 period, I find that the average...

Employing an international sample of 29,889 firms across 67 economies spanning 2007 to 2018, this paper investigates the impact of climate change on corporate tax avoidance. Empirical results show that higher climate risk is associated with higher tax avoidance. Further analysis suggests that...