Tax misers sell off worse than market in pandemic

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By Jon Hay
12 May 2020

Companies that pay little tax have suffered worse share price declines during the coronavirus pandemic than the market as a whole — a result that suggests investors may at last be taking notice of this long ignored aspect of corporate governance.

The evidence has been uncovered by a hedge fund, Auriel Investors, which specialises in sustainable investing. It runs an equity market-neutral long/short strategy, in which it goes long companies with good environmental, social and governance (ESG) credentials, and short bad performers.

Auriel introduced the ‘tax gappers’ strand of ...

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