BURA Collection:

Public country-by-country reporting, tax avoidance and the cost of equity capital: pan-European evidence

2026-07-02T02:00:14Z

Title: Public country-by-country reporting, tax avoidance and the cost of equity capital: pan-European evidence Authors: Aboud, A; Eliwa, Y; Liu, J; Saleh, A Abstract: Purpose: The purpose of this paper is to investigate the role of tax avoidance in multinational corporations’ management decisions to voluntarily disclose country-by-country (CbC) information in annual reports and examine investors’ perceptions of these disclosures. Design/methodology/approach: The authors use robust cluster standard errors pooled regression and a sample of 3,243 firm-year observations of European multinational corporations (MNCs) between 2007 and 2018. CbC reporting data are hand-collected from MNCs’ annual reports, whereas the firm-level financial variables are obtained from the Thomson Reuters DataStream and IBES databases. Data for the Financial Secrecy Index are obtained from the Tax Justice Network website. Findings: This study demonstrates that firms engaging in higher levels of tax avoidance tend to disclose less CbC information. Furthermore, the authors find that investors reward increased transparency and tax-responsible behavior by lowering the cost of equity capital. The analysis also shows that the impact of CbC reporting on the cost of equity is more pronounced for firms with lower tax avoidance. Additionally, the authors find that multinational corporations with high tax avoidance operating in countries with high financial secrecy are less likely to disclose CbC information. Originality/value: This study contributes to the growing discourse on corporate tax behavior by offering policy-relevant insights for regulators, policymakers and accounting standard-setters in support of mandatory public CbC reporting for non-financial multinational corporations.

The Trade-off Between Security and Privacy: An Empirical Investigation Using Pakistani Survey Data

2026-06-26T02:00:15Z

Title: The Trade-off Between Security and Privacy: An Empirical Investigation Using Pakistani Survey Data Authors: Apostolakis, A; Бадуненко (Badunenko), ОO; Jaffry, S; Akbar Nasir, K Abstract: This study investigates the complex trade-off between security and privacy in the context of Pakistan’s evolving urban landscape with a particular focus on the controversial Safe Cities initiative in Lahore. Despite the growing global interest in smart and safe city frameworks, there remains a significant research gap in understanding how such projects affect individual preferences in developing countries, especially where legal protections for privacy are weak or absent. Addressing this gap, the study aims to empirically examine how citizens perceive and prioritize security versus privacy, and how these preferences vary across socio-demographic groups. Using survey data collected from two major Pakistani cities, Multan and Rawalpindi, the research employs a conceptual utility model and econometric analysis to quantify individual preferences. The model incorporates comparative statics and budget constraints to derive optimal levels of security and privacy, while the econometric strategy explores heterogeneity across gender, age, education, employment status, and income. Findings reveal a strong unconditional preference for security among respondents. However, when socio-demographic factors are introduced, significant variation emerges, indicating that preferences are not uniform across individuals, or regions. These insights underscore the need for localized, evidence-based public policy that balances safety with privacy, rather than adopting a one-size-fits-all approach. The paper concludes with policy recommendations aimed at fostering inclusive and context-sensitive urban governance. Description: Data availability: Data will be made available on request.; JEL classification: D60; I31; I38.

Local Power, Global Scores: Effects of Decentralization Reform on Ukraine’s School Graduate Outcomes

2026-06-26T02:00:18Z

Title: Local Power, Global Scores: Effects of Decentralization Reform on Ukraine’s School Graduate Outcomes Authors: Zadorozhna, O; Badunenko, О Abstract: This paper estimates the causal effect of fiscal decentralization and newly gained spending autonomy on educational outcomes in Ukraine. Exploiting the staggered voluntary formation of amalgamated local governments (hromadas) between 2015 and 2020, we use an event-study design applied to student-level standardized exam scores for some 140 thousand graduates in 2018–2019. Decentralization improved the overall academic performance across all subjects taken for below-median students by approximately 20 percent while reducing outcomes for above-median students by roughly 5 percent, revealing an equity-excellence trade-off. The effects are heterogeneous across subjects: decentralization improved STEM achievement across the entire performance distribution, whereas in the humanities, gains for lower-performing students were offset by losses among high achievers. The reform’s benefits were concentrated in lower-income hromadas, where an expanded fiscal base and greater local control over education spending drove the largest improvements. Urban hromadas experienced stronger performance gains than rural ones, where teacher shortages may have constrained the reform’s effectiveness. Overall, the findings indicate that decentralization reform has been a significant force for reducing educational disparities; however, complementary investments, particularly in teacher quality, are needed to realize the reform’s full potential and to support high achievers. Description: Data availability: Mendeley Data Repository: Ukraine’s School Graduate Outcomes (Original data), including the replication package (Mendeley Data); JEL classification: H75; I21; H72; O18.

Threshold Regression for Fixed‐T Panel Data with Interactive Fixed Effects

2026-06-20T02:00:16Z

Title: Threshold Regression for Fixed‐T Panel Data with Interactive Fixed Effects Authors: Ditzen, J; Karavias, Y; Westerlund, J Abstract: This paper develops a new toolbox for estimation and inference in panel data threshold regression models with interactive fixed effects and a fixed number of time periods, T. The toolbox is designed to be simple, accurate, and computationally efficient. It is based on a simple least squares style estimator of the model parameters, and includes a number of inferential procedures for testing hypotheses regarding not only the threshold but also other parameters. The new toolbox is applied to study the impact of inflation on economic growth. Description: Supporting Information is available online at: https://onlinelibrary.wiley.com/doi/10.1111/obes.70102#support-information-section .