The Corrosive Effect of Offshore Financial Centers on Multinational Firms’ Disclosure Strategy

Courtesy of Walid Ben Amar, Luo He, Tiemei Li, and Michel Magnan Establishing subsidiaries in offshore financial centers (OFCs), such as the Bahamas, Bermuda, and the Cayman Islands, has become increasingly common for multinational corporations. For multinationals headquartered in the U.S., the primary (or at least ostensible) purpose of creating OFC subsidiaries is to reduce taxes. […]