The Market Punished “Panama Papers” Firms to the Tune of $230 Billion
▻https://hbr.org/2016/05/the-market-punished-panama-papers-firms-to-the-tune-of-230-billion
We looked at the stock market reaction of publicly-listed firms around the globe. We collected stock price data for roughly 27,000 of them. And of those, we identified roughly 1,100 firms that have exposure to any of the major tax havens that were used by Mossack Fonseca, the Panama-based law firm at the heart of the data leak.
So what did you find?
We find that firms with exposure to any of these major havens lost roughly $230 billion in market capitalization. The economic magnitude is rather stunning. It’s along the lines of $200 million per firm on average. However, all of these are large firms, so this reflects roughly 0.5% of market capitalization of these firms.