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Cross-border investment, deterrence, and compliance effects of ownership transparency

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  • Amberger, Harald J.
  • Wilde, Jaron H.
  • Wu, Yuchen

Abstract

We exploit the staggered adoption of beneficial ownership registers in the EU to study (i) whether and how the requirement to disclose information on an entity's ultimate human owner (ownership transparency) shapes cross-border investment, (ii) whether ownership transparency deters “potentially illicit” versus “likely legitimate” activity, and (iii) which types of firms try to avoid ownership disclosure. We find that investment from non-EU financial havens into the EU declines significantly after countries adopt ownership registers. Public scrutiny and enforcement emerge as key factors shaping this decline. Further, potentially illicit actors do not appear to alter their investment behavior. Instead, they appear less likely to comply with the transparency regulation. Our findings provide insights relevant to regulation aimed at enhancing ownership transparency.

Suggested Citation

  • Amberger, Harald J. & Wilde, Jaron H. & Wu, Yuchen, 2025. "Cross-border investment, deterrence, and compliance effects of ownership transparency," Journal of Accounting and Economics, Elsevier, vol. 80(2).
    • Handle: RePEc:eee:jaecon:v:80:y:2025:i:2:s016541012500045x
    DOI: 10.1016/j.jacceco.2025.101809
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    Keywords

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    JEL classification:

    • D25 - Microeconomics - - Production and Organizations - - - Intertemporal Firm Choice: Investment, Capacity, and Financing
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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