Konferenzbeitrag
Increasing tax transparency: Investor reactions to the country-by-country reporting requirement for EU financial institutions
We employ an event study methodology to investigate the stock price reaction around the day of the political decision to include a country-by-country reporting obligation for EU financial institutions. We do not find significant abnormal returns for the banks affected. Sample splits according to the effective tax rate and the degree of B2C orientation do not reveal a more pronounced negative investor response for banks engaging more strongly in tax avoidance or being potentially more concerned about reputational risks, respectively. We conclude that the implementation of a CbCR requirement for EU financial institutions did not trigger a noticeable investor response. Contrary prior findings regarding other public tax disclosure obligations might be driven by the distinct motivation of the rules and the way the information is presented. We contend that capital market reactions to an upcoming increase in tax transparency are not generalizable to other industries and settings, but that consideration must be given to the context and the exact design of the rule.
- Language
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Englisch
- Bibliographic citation
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Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2018: Digitale Wirtschaft - Session: Taxation III ; No. C09-V3
- Classification
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Wirtschaft
Business Taxes and Subsidies including sales and value-added (VAT)
Tax Evasion and Avoidance
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Financial Institutions and Services: Government Policy and Regulation
Business Taxes and Subsidies including sales and value-added (VAT)
Tax Evasion and Avoidance
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Financial Institutions and Services: Government Policy and Regulation
- Subject
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Tax Avoidance
Profit Shifting
Country-by-Country Reporting
Financial Institutions
Market Reaction
- Event
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Geistige Schöpfung
- (who)
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Dutt, Verena Katharina
Ludwig, Christopher Alexander
Nicolay, Katharina
Vay, Heiko
Voget, Johannes
- Event
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Veröffentlichung
- (who)
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ZBW - Leibniz-Informationszentrum Wirtschaft
- (where)
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Kiel, Hamburg
- (when)
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2018
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Konferenzbeitrag
Associated
- Dutt, Verena Katharina
- Ludwig, Christopher Alexander
- Nicolay, Katharina
- Vay, Heiko
- Voget, Johannes
- ZBW - Leibniz-Informationszentrum Wirtschaft
Time of origin
- 2018
Other Objects (12)
Increasing tax transparency: Investor reactions to the country-by-country reporting requirement for EU financial institutions
Increasing tax transparency : investor reactions to the country-by-country reporting requirement for EU financial institutions
Country-by-country reporting: Tension between transparency and tax planning
Country-by-country reporting : tension between transparency and tax planning
Reporting behavior and transparency in European banks' country-by-country reports
Reporting behavior and transparency in European banks' country-by-country reports
Tax transparency and international tax avoidance - evidence from country-by-country reporting
Country-by-Country Reporting: The pros and cons of more tax transparency
Country-by-country reporting and other financial transparency measures affecting the European Union
Effects of corporate transparency on tax avoidance: Evidence from Country-by-Country Reporting
Incentive effects of tax transparency: Does country-by-country reporting call for arbitration?
Transparency in financial reporting: Is country-by-country reporting suitable to combat international profit shifting?
Increasing tax transparency: Investor reactions to the country-by-country reporting requirement for EU financial institutions
Increasing tax transparency : investor reactions to the country-by-country reporting requirement for EU financial institutions
Country-by-country reporting: Tension between transparency and tax planning
Country-by-country reporting : tension between transparency and tax planning
Reporting behavior and transparency in European banks' country-by-country reports
Reporting behavior and transparency in European banks' country-by-country reports
Tax transparency and international tax avoidance - evidence from country-by-country reporting
Country-by-Country Reporting: The pros and cons of more tax transparency
Country-by-country reporting and other financial transparency measures affecting the European Union
Effects of corporate transparency on tax avoidance: Evidence from Country-by-Country Reporting
Incentive effects of tax transparency: Does country-by-country reporting call for arbitration?
Transparency in financial reporting: Is country-by-country reporting suitable to combat international profit shifting?
Increasing tax transparency: Investor reactions to the country-by-country reporting requirement for EU financial institutions
Increasing tax transparency : investor reactions to the country-by-country reporting requirement for EU financial institutions
Country-by-country reporting: Tension between transparency and tax planning
Country-by-country reporting : tension between transparency and tax planning
Reporting behavior and transparency in European banks' country-by-country reports
Reporting behavior and transparency in European banks' country-by-country reports
Tax transparency and international tax avoidance - evidence from country-by-country reporting
Country-by-Country Reporting: The pros and cons of more tax transparency
Country-by-country reporting and other financial transparency measures affecting the European Union
Effects of corporate transparency on tax avoidance: Evidence from Country-by-Country Reporting
Incentive effects of tax transparency: Does country-by-country reporting call for arbitration?