Influence of Deoffshorization on the Russian Companies

The study is devoted to the analysis of the influence the deoffshorization on the Russian companies on the example of the three major companies, which have subsidiaries with offshore structures and have announced their intention to leave the offshore zones. Basically deoffshorization laws are aimed at forcing companies to withdraw from the favorable business zones (in terms of low taxes, ease of record keeping, etc.). The analysis of deoffshorization effects was conducted with the help of events study tools. By comparison of the shares cumulative abnormal in different moments of time, it was concluded that the only one of the three companies had experienced a statistically significant negative effect in form of the reduction of its value. However the restructuring costs were incurred by all viewed companies, presumably . It is expected that the research with includes empirically findings will be a kind of recommendation to be subsequently applied to a variety of businesses in Russia and it can also be a valuable tool for management decisions and protection strategies against the negative effects of deoffshorization.