In this paper, we explore the relationship between the culture of the country where a multinational corporation (MNC) is headquartered and the MNC’s stock market reaction to tax avoidance regulations. Specifically, we examine the different responses of MNCs following the implementation of the 2010 UK reform that restricted profit shifting for a specific group of firms. We find that, in countries with short-term-oriented cultures, MNCs affected by this reform experienced positive stock market responses relative to their unaffected counterparts. This is not found in long-term-oriented cultures. This difference in response can partly be explained by the differing perceptions of the role tax havens play in tax minimization practices between more long-term-oriented cultures and those oriented towards the short term. We provide evidence that investors from more future-oriented cultures may recognize the short-lived effectiveness of a regulation ex ante, and thus price the quasi-exogenous market shock differently than their more short-term-oriented counterparts.

中文翻译：

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长期导向和避税法规

在本文中，我们探讨了跨国公司 (MNC) 总部所在国的文化与跨国公司股票市场对避税法规的反应之间的关系。具体而言，我们研究了 2010 年英国实施限制特定企业群体利润转移的改革后跨国公司的不同反应。我们发现，在具有短期导向文化的国家，受此次改革影响的跨国公司相对于未受影响的同行而言，股市反应积极。这在长期导向的文化中是不存在的。造成这种反应差异的部分原因是，长期导向的文化和短期导向的文化对避税天堂在税收最小化实践中所扮演的角色有不同的看法。我们提供的证据表明，来自更注重未来文化的投资者可能会事前认识到监管的短暂有效性，因此对准外生市场冲击的定价与更注重短期的投资者不同。