Abstract: Using new data from the Panama Papers, I test for an investor response to regulatory reforms that improve foreign asset transparency. I find that immediately prior to its roll-out, affected investors roughly double offshore entity incorporations to circumvent the EU Savings Directive. However, Tax Information Exchange Agreements, the Foreign Account Tax Compliance Act, and the Common Reporting Standard for information exchange result in declines in offshore entity usage. My study provides a rare direct look at investors taking action to increas...
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