De-offshorization of Russian Companies: Empirical Analysis

The final qualifying work is devoted to the study of the consequences of the introduction of the deoffshorization policy carried out in the Russian Federation during the period from 2013 to 2018. The introduction of laws that increase the requirements for companies with assets in offshore zones have advantages and disadvantages: the state increases tax revenues and reduces the sector of the shadow economy. Companies are forced to change the structure of expenditures, and might move assets to Russia, that will entail additional costs. Analysis of the results of the policy will provide a qualitative assessment of its impact on the economy. The analysis of earlier studies revealed the negative impact of foreign direct investment in offshore zones on the regional economy. The study found no significant changes in the returns of shares of the companies studied on the events associated with deoffshorization: the results of firms with subsidiaries in offshore zones did not differ from companies without subsidiaries in offshore. Analysis of the overall market reaction through the IMOEX index also showed a neutral reaction. The study of the dynamics of the share of tax revenues in company revenues showed no changes in the structure of expenses of companies. Thus, it was concluded that it is impractical to conduct a policy of deoffshorization in relation to state-forming companies due to their developed financial structure, but still relevant for individuals, small and medium-sized businesses and the shadow sector of the economy.