- Akamah, H., Hope, O. K., & Thomas, W. B. (2018). Tax havens and disclosure aggregation. Journal of International Business Studies, 49(1), 49-69.
Harsh criticism meets U.S. firms who are accused of shifting profits offshore to avoid taxes. This study examines the extent of operations in tax havens compared with U.S. companies’ disclosures of geographic operations. This study uses hypothesis testing and change analyses to conclude that firms operating more extensively in tax havens tend to disclose information at a higher level of aggregation. In the future, country-specific reporting is needed to highlight the tax-avoidance activities of firms and prevent firms from hiding tax-avoidance behavior.
- Ballesteros, L., Useem, M., & Wry, T. (2017). Masters of disasters? An empirical analysis of how societies benefit from corporate disaster aid. Academy of Management Journal, 60(5), 1682-1708.
Corporations are increasingly facing social pressures to adopt responsibilities such as disaster relief and recovery that traditionally fall upon governments and aid agencies. This study argues that firms with a local presence are more capable than other organizations to act with more efficiency to help areas affected by catastrophes. Using a quasi-experimental analysis, the authors examine every natural disaster and reported aid donation worldwide from 2003-2013 and find that nations that received a substantial proportion of aid from firms with local operations received relief in a shorter time and recovered faster than if they would have received a larger proportion of aid from other sources. This shows how corporations can greatly benefit nations by becoming involved when disaster strikes.