Market reaction to private Country-by-Country Reporting

Kód výsledku v 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>

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

Market reaction to private Country-by-Country Reporting

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

Market reaction to private Country-by-Country Reporting

Popis výsledku anglicky

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.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50201 - Economic Theory

Projekt

<a href="/cs/project/GM21-05547M" target="_blank" >GM21-05547M: Zdanění nadnárodních korporací v globalizovaném světě (CORPTAX)</a><br>

Návaznosti

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Rok uplatnění

2025

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Economic Modelling

ISSN

0264-9993

e-ISSN

1873-6122

Svazek periodika

152

Číslo periodika v rámci svazku

November 2025

Stát vydavatele periodika

NL - Nizozemsko

Počet stran výsledku

12

Strana od-do

107246

Kód UT WoS článku

001561417500001

EID výsledku v databázi Scopus

2-s2.0-105013837972