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Corporate investments in tax havens: evidence from India

Author

Listed:
  • K. V. Mukundhan

    (Indian Institute of Management Tiruchirappalli)

  • Sreevas Sahasranamam

    (Strathclyde Business School, University of Strathclyde)

  • James J. Cordeiro

    (State University of New York (SUNY) – Brockport)

Abstract

Little is known about the drivers of corporate investments in tax havens from emerging markets. This paper offers extensive descriptive statistics and regression analysis to illustrate the patterns and motivations for tax haven investments by Indian firms over the 2007–2017 period. We find that the motivations for Indian firms to invest in tax havens are not only driven by the benefits of tax avoidance and secrecy of these jurisdictions, but also to seek strategic advantage and efficiency gains in global markets.

Suggested Citation

  • K. V. Mukundhan & Sreevas Sahasranamam & James J. Cordeiro, 2019. "Corporate investments in tax havens: evidence from India," Asian Business & Management, Palgrave Macmillan, vol. 18(5), pages 360-388, November.
    • Handle: RePEc:pal:abaman:v:18:y:2019:i:5:d:10.1057_s41291-019-00086-y
    DOI: 10.1057/s41291-019-00086-y
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    Cited by:

    1. Sahasranamam, Sreevas & Arya, Bindu & Mukundhan, K.V., 2022. "Dual institutional embeddedness and home country CSR Engagement: Evidence from Indian MNEs," Journal of Business Research, Elsevier, vol. 141(C), pages 163-174.
    2. James J. Cordeiro & Ambra Galeazzo & Tara Shankar Shaw, 2023. "The CSR–CFP relationship in the presence of institutional voids and the moderating role of family ownership," Asian Business & Management, Palgrave Macmillan, vol. 22(1), pages 137-163, February.
    3. Fei Ge & Peipei Wu & Yun Feng & Lu Gao, 2023. "Do enterprises with foreign direct investments in tax havens prefer charitable donations? Evidence from China," Asian Business & Management, Palgrave Macmillan, vol. 22(5), pages 2056-2076, November.
    4. Donnelly, Róisín & Manolova, Tatiana S., 2020. "Foreign location decisions through an institutional lens: A systematic review and future research agenda," International Business Review, Elsevier, vol. 29(4).
    5. Vijay Pereira & Yama Temouri & Chris Jones & Ashish Malik, 2019. "Identity of Asian Multinational Corporations: influence of tax havens," Asian Business & Management, Palgrave Macmillan, vol. 18(5), pages 325-336, November.

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