Market reaction to private Country-by-Country Reporting
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F25%3A10510509" target="_blank" >RIV/00216208:11230/25:10510509 - isvavai.cz</a>
Result on the web
<a href="https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=5IcRh-L_gt" target="_blank" >https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=5IcRh-L_gt</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1016/j.econmod.2025.107246" target="_blank" >10.1016/j.econmod.2025.107246</a>
Alternative languages
Result language
angličtina
Original language name
Market reaction to private Country-by-Country Reporting
Original language description
This paper provides the first empirical evidence of how stock markets respond to private Country-by-Country Reporting (CbCR), a regulation promoting tax transparency. Using an event study, the analysis focuses on African stock markets in countries that are signatories to the Multilateral Competent Authority Agreement (CbC MCAA). The findings reveal a stock price decline for firms subject to CbCR, particularly those with aggressive tax practices, reflecting investor concerns over reduced profit-shifting opportunities. Cross-listed firms experience positive stock price reactions in foreign markets due to expectations of improved corporate governance. In contrast, non-cross-listed firms face negative reactions in domestic markets, driven by heightened tax enforcement risks. These results emphasise the influence of private tax disclosure on market sentiment and its potential to deter aggressive tax avoidance.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50201 - Economic Theory
Result continuities
Project
<a href="/en/project/GM21-05547M" target="_blank" >GM21-05547M: Taxing multinational corporations in the globalised world (CORPTAX)</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)
Others
Publication year
2025
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Economic Modelling
ISSN
0264-9993
e-ISSN
1873-6122
Volume of the periodical
152
Issue of the periodical within the volume
November 2025
Country of publishing house
NL - THE KINGDOM OF THE NETHERLANDS
Number of pages
12
Pages from-to
107246
UT code for WoS article
001561417500001
EID of the result in the Scopus database
2-s2.0-105013837972