Expropriations, Property Confiscations and New Offshore Entities: Evidence from the Panama Papers
Journal
Journal of Economic Behavior and Organization
ISSN
0167-2681
Type
journal article
Date Issued
2020
Author(s)
Abstract (De)
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.
Language
English
HSG Classification
contribution to scientific community
HSG Profile Area
SEPS - Quantitative Economic Methods
Refereed
Yes
Publisher
Elsevier
Volume
171
Subject(s)
Eprints ID
259895