The Deterrence Effect of Whistleblowing: An Event Study of Leaked Customer Information from Banks in Tax Havens
We document that the first leak of customer information from a tax haven bank caused a sudden flight of deposits from tax havens and a sharp decrease in the market value of banks known to be assisting with tax evasion. The loss of market value was largest for the banks most strongly involved in tax evasion and zero for banks with no known ties to tax evasion. Subsequent leaks had qualitatively similar although smaller effects. Our findings suggest that whistleblowing in tax haven banks deters offshore tax evaders by increasing the perceived risk of committing and assisting with tax evasion.
Year of publication: |
2017
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Authors: | Johannesen, Niels ; Stolper, Tim |
Publisher: |
Munich : Center for Economic Studies and ifo Institute (CESifo) |
Subject: | whistleblowing | economic crime | tax evasion | tax havens |
Saved in:
freely available
Series: | CESifo Working Paper ; 6784 |
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Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Working Paper |
Language: | English |
Other identifiers: | 1010162853 [GVK] hdl:10419/174907 [Handle] RePec:ces:ceswps:_6784 [RePEc] |
Classification: | G21 - Banks; Other Depository Institutions; Mortgages ; H26 - Tax Evasion ; K42 - Illegal Behavior and the Enforcement of Law |
Source: |
Persistent link: https://www.econbiz.de/10011794123