To launder or not to launder: are there positive effects for the economies of countries who launder money?

Abstract

AbstractThis paper empirically examines the impact of corporate money laundering/gambling activities on firms’ financial performance. We specifically address whether Australian firms associated with money laundering suffer any short‐ or long‐term financial performance effects following the public announcement of money laundering activities. Our findings suggest that Australian firms that engage in money laundering/gambling activities perform significantly better than firms in other countries after such announcements.