In this paper, we analyze the risk-taking behavior of banks in emerging economies in a context of international capital mobility. Our paper highlights a new channel through which depositors can exercise pressure to control risk-taking. Depositors can reallocate their savings away from their home country to the more protective system of a developed economy. We recover a classical result according to which increased competition resulting from more international nancial openness induces banks to take excessive risks. We nd however that suf ciently high nancial openness is necessary for a positive link between nancial transparency and safe risk management. Finally, we test the relationship between disclosure, nancial openness and bank risk-taking for a panel of 258 banks from the MENA region and Turkey.
We investigate the impact of corruption on tax compliance using a sample of 700 small business in Bamako, Mali. Our results show that paying bribes reduced tax compliance by almost ten percentage points.
In this paper, we investigate the e¤ect of cost misreporting of extractive …rms on the optimal design of tax policies. We build a two-period, two-country model where governments aim to attract a foreign-owned multinational …rm to raise tax revenues by levying a pro…t tax and a royalty. The …rm overstates its production costs to reduce declared pro…ts and it decides in which country to locate. We …nd that cost overstatement pushes royalties upward but remains detrimental for tax revenues as well as the capital invested by the …rm. The mining country that attracts the extractive …rm is often the country with the highest coe¢ cient of overstatement. However, the …rm may locate in the country with the lowest overstatement and lowest royalty if both countries have the same pro…t tax. Reinforcing expertise in mining sectors to reduce asymmetries of information between …rms and tax authorities appears to be a priority in developing resource countries.
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