Does the OECD have "Teeth?": Evaluation of Market Reaction to Key Events in the OECD BEPS Action Plan Timeline
PublisherThe University of Arizona.
RightsCopyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.
AbstractIn February 2013, the OECD introduced its Base Erosion and Profit Shifting Project. This study investigates whether there is a market reaction on key event dates throughout the development of the BEPS project. The OECD has no regulatory power and analysts have doubted whether it will change the global corporate taxation structure or even lead to an increase in corporate taxation for multinational corporations. However, major accounting firms have published advice on how to comply with changes required by the BEPS Action Plan. I examine the three-day cumulative abnormal return for different categories of firms that may be disproportionately affected by changes brought about by the BEPS Project. I find the expected negative market reaction on several of the key event dates, indicating investors believe the OECD's plan will be implemented.
Degree ProgramHonors College