Tax Havens and Disclosure Aggregation

21 Pages Posted: 24 Apr 2018 Last revised: 7 Jun 2018

See all articles by Ole-Kristian Hope

Ole-Kristian Hope

University of Toronto - Rotman School of Management

Date Written: June 2017


Multinational firms have been accused by politicians, regulators, and citizen groups of shifting profits to low-tax geographic areas. We present evidence that multinational firms with tax-haven operations tend to aggregate their geographic disclosures to a greater extent. The results are consistent with managers attempting to avoid criticism by reducing the transparency of their tax-avoidance activities. We find these results to be stronger for larger firms with higher political costs and for firms in natural-resources industries, in retail industries, or with low competition. The evidence is relevant to policymakers and others interested in multinational firms’ financial reporting and tax activities.

Keywords: tax havens, aggregation, disclosure transparency, tax avoidance, geographic reporting, Exhibit 21

Suggested Citation

Hope, Ole-Kristian, Tax Havens and Disclosure Aggregation (June 2017). Journal of International Business Studies, Vol. 49, Issue 1, 2017, Available at SSRN: or

Ole-Kristian Hope

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4


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