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

This 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.