Anti‐mafia police actions, criminal firms, and peer firm tax avoidance

Research output: Contribution to Journal/Magazine › Journal article › peer-review

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Anti‐mafia police actions, criminal firms, and peer firm tax avoidance. / Chircop, Justin; Fabrizi, Michele; Malaspina, Patrizia et al.
In: Journal of Accounting Research, Vol. 61, No. 1, 31.03.2023, p. 243-277.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Harvard

Chircop, J, Fabrizi, M, Malaspina, P & Parbonetti, A 2023, 'Anti‐mafia police actions, criminal firms, and peer firm tax avoidance', Journal of Accounting Research, vol. 61, no. 1, pp. 243-277. https://doi.org/10.1111/1475-679x.12455

APA

Chircop, J., Fabrizi, M., Malaspina, P., & Parbonetti, A. (2023). Anti‐mafia police actions, criminal firms, and peer firm tax avoidance. Journal of Accounting Research, 61(1), 243-277. https://doi.org/10.1111/1475-679x.12455

Vancouver

Chircop J, Fabrizi M, Malaspina P, Parbonetti A. Anti‐mafia police actions, criminal firms, and peer firm tax avoidance. Journal of Accounting Research. 2023 Mar 31;61(1):243-277. Epub 2022 Aug 4. doi: 10.1111/1475-679x.12455

Author

Chircop, Justin ; Fabrizi, Michele ; Malaspina, Patrizia et al. / Anti‐mafia police actions, criminal firms, and peer firm tax avoidance. In: Journal of Accounting Research. 2023 ; Vol. 61, No. 1. pp. 243-277.

Bibtex

@article{ed294d0288b6442f8fd8675094489124,

title = "Anti‐mafia police actions, criminal firms, and peer firm tax avoidance",

abstract = "Mafia firms introduce distortions in the markets in which they operate, increasing the cost of doing business for peer firms. We investigate whether peers respond by increasing their tax avoidance and thus increasing funds available to compete with the Mafia firms. Using a sample of Italian anti-Mafia police actions that resulted in the removal of Mafia firms and a difference-in-differences approach, we find that peers reduce their tax avoidance following these actions. We further show that, following anti-Mafia police actions, peer firms improve their performance and increase capital investment while enjoying a reduction in the cost of raw materials. Overall, our results highlight the micro-level channels through which Mafia can affect firm outcomes and local economies.",

keywords = "Tax avoidance, Criminal firms, Organized crime, Peer firms, anti-Mafia Actions",

author = "Justin Chircop and Michele Fabrizi and Patrizia Malaspina and Antonio Parbonetti",

year = "2023",

month = mar,

day = "31",

doi = "10.1111/1475-679x.12455",

language = "English",

volume = "61",

pages = "243--277",

journal = "Journal of Accounting Research",

issn = "0021-8456",

publisher = "Wiley-Blackwell",

number = "1",

}

RIS

TY - JOUR

T1 - Anti‐mafia police actions, criminal firms, and peer firm tax avoidance

AU - Chircop, Justin

AU - Fabrizi, Michele

AU - Malaspina, Patrizia

AU - Parbonetti, Antonio

PY - 2023/3/31

Y1 - 2023/3/31

N2 - Mafia firms introduce distortions in the markets in which they operate, increasing the cost of doing business for peer firms. We investigate whether peers respond by increasing their tax avoidance and thus increasing funds available to compete with the Mafia firms. Using a sample of Italian anti-Mafia police actions that resulted in the removal of Mafia firms and a difference-in-differences approach, we find that peers reduce their tax avoidance following these actions. We further show that, following anti-Mafia police actions, peer firms improve their performance and increase capital investment while enjoying a reduction in the cost of raw materials. Overall, our results highlight the micro-level channels through which Mafia can affect firm outcomes and local economies.

AB - Mafia firms introduce distortions in the markets in which they operate, increasing the cost of doing business for peer firms. We investigate whether peers respond by increasing their tax avoidance and thus increasing funds available to compete with the Mafia firms. Using a sample of Italian anti-Mafia police actions that resulted in the removal of Mafia firms and a difference-in-differences approach, we find that peers reduce their tax avoidance following these actions. We further show that, following anti-Mafia police actions, peer firms improve their performance and increase capital investment while enjoying a reduction in the cost of raw materials. Overall, our results highlight the micro-level channels through which Mafia can affect firm outcomes and local economies.

KW - Tax avoidance

KW - Criminal firms

KW - Organized crime

KW - Peer firms

KW - anti-Mafia Actions

U2 - 10.1111/1475-679x.12455

DO - 10.1111/1475-679x.12455

M3 - Journal article

VL - 61

SP - 243

EP - 277

JO - Journal of Accounting Research

JF - Journal of Accounting Research

SN - 0021-8456

IS - 1

ER -

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