Quality of management schools, strength of auditing and reporting standards and tax evasion

2018 ◽  
Vol 13 (2) ◽  
pp. 149-162 ◽  
Author(s):  
Hichem Khlif ◽  
Achraf Guidara
Keyword(s):  
Tax Evasion ◽  
Tax Compliance ◽  
High Strength ◽  
Policy Implications ◽  
Reporting Standards ◽  
Content Type ◽  
Global Competitiveness ◽  
Legal Enforcement ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between the quality of management schools and tax evasion and tests whether the strength of auditing and reporting standards moderates such a relationship. Design/methodology/approach Tax evasion is measured using the macro-indirect approach based on Schneider, Buehn and Monterngro (2010). The quality of management schools is collected from The Global Competitiveness Report for 2014-2015. Findings On the basis of sample of 137 countries, the authors document that the level of tax evasion is negatively associated with the quality of management schools and the strength of auditing and reporting standards. When the authors distinguish between low- and high-strength of auditing and reporting standards countries, the authors find that the negative and significant association remains stable only for high-strength of auditing and reporting standards countries. Practical implications These results imply that the quality of management schools through its output (managers, fiscal controllers, auditors and businessmen) may increase the tendency of individuals in a given country to comply with tax rules and that legal enforcement may affect the ethical behaviours of these actors with regard to tax evasion. Originality/value The empirical findings have policy implications for governments with high levels of tax evasion since they highlight the importance of the quality of higher educational system in shaping tax compliance behaviour.

scholarly journals Sustainability level, corruption and tax evasion: a cross-country analysis

2016 ◽  
Vol 23 (2) ◽  
pp. 328-348 ◽  
Author(s):  
Hichem Khlif ◽  
Achraf Guidara ◽  
Khaled Hussainey
Keyword(s):  
Tax Evasion ◽  
Design Methodology ◽  
Policy Implications ◽  
Content Type ◽  
Global Competitiveness ◽  
Country Analysis ◽  
Cross Country ◽  
The Relationship ◽  
Global Competitiveness Report

Purpose This paper aims to examine the relationship between the level of sustainability and tax evasion and test whether the level of corruption moderates such a relationship. Design/methodology/approach The sample consists of 65 developed and developing countries. Tax evasion is measured using a macro indirect approach used by Schneider et al. (2010). The sustainability level and corruption variables are collected from The Global Competitiveness Report for 2012-2013. Findings This study finds that the level of tax evasion is negatively associated with the level of sustainability (overall score and social and environmental score) and the quality of infrastructure. When we distinguish between low- and high-corruption countries, we find that this negative association is significant for low-corruption countries and insignificant for high-corruption countries. These results imply that the level of corruption may reduce the tendency of individuals in a given state to accept and trust their government in general and comply with the tax rules in particular. Originality/value Our empirical findings have policy implications for governments with high levels of tax evasion, as they highlight the importance of states’ engagements towards their citizens in reducing tax evasion.

Financial crime, corruption and tax evasion: a cross-country investigation

2018 ◽  
Vol 21 (4) ◽  
pp. 545-554 ◽  
Author(s):  
Ines Amara ◽  
Hichem Khlif
Keyword(s):  
Money Laundering ◽  
Tax Evasion ◽  
Design Methodology ◽  
Positive Relationship ◽  
Policy Implications ◽  
Financial Crime ◽  
Content Type ◽  
Financial Crimes ◽  
Cross Country ◽  
The Relationship

Purpose This paper aims to examine the relationship between the financial crime and tax evasion and tests whether corruption moderates such a relationship. Design/methodology/approach Tax evasion measure is based on Schneider et al. (2010). Financial crime is collected from Basel anti-money laundering (AML) report. Findings Using a sample of 120 countries, the authors find that the level of financial crime is positively associated with tax evasion. When testing for the moderating effect of corruption, they document that the positive relationship between financial crime and tax evasion is more pronounced for high corrupt environments. Originality/value The findings have policy implications for governments aiming to combat tax evasion and financial crimes.

Strength of auditing and reporting standards, ethical behavior of firms and sustainability: a cross-country investigation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Achraf Guidara ◽  
Anis El Ammari ◽  
Hichem Khlif
Keyword(s):  
Business Ethics ◽  
Ethical Behavior ◽  
Design Methodology ◽  
Positive Association ◽  
Policy Implications ◽  
Reporting Standards ◽  
Content Type ◽  
Global Competitiveness ◽  
Ethical Behaviors ◽  
Cross Country

PurposeThis paper aims to examine the association between the strength of auditing and reporting standards (SARS, hereafter) and sustainability and investigates whether ethical behavior of firms moderates relationship between SARS and sustainability.Design/methodology/approachThe sample consists of 500 country-year observations over the period of 2014–2017. Sustainability is collected from the Global Sustainable Competitiveness Index Reports for 2014, 2015, 2016 and 2017, while SARS and ethical behaviors are collected from the Global Competitiveness Reports for the same years.FindingsThe findings of this study suggest that the SARS is associated with sustainability. Similarly, ethical behavior of firms has a positive and significant effect on sustainability. When testing for the moderating effect of ethical behavior of firms on the association between SARS and sustainability, the results show that the positive association SARS becomes positive and more significant for countries where firms operate with high ethical behaviors, while the association becomes insignificant for settings where firms operate with low ethical behaviors.Originality/valueThe findings emphasize the role played by SARS and business ethics in improving sustainability. These results may have policy implications for governments aiming to improve sustainability by strengthening auditing and reporting standards and enforcing laws obliging firms to act ethically.

Strength of auditing and reporting standards, corruption and money laundering: a cross-country investigation

2020 ◽  
Vol 35 (9) ◽  
pp. 1243-1259
Author(s):  
Ines Amara ◽  
Hichem Khlif ◽  
Anis El Ammari
Keyword(s):  
Money Laundering ◽  
Positive Association ◽  
Moderating Effect ◽  
Policy Implications ◽  
Reporting Standards ◽  
Content Type ◽  
Dummy Variable ◽  
Interaction Variable ◽  
Negative Effect ◽  
The Relationship

Purpose This paper aims to investigate the relationship between the strength of auditing and reporting standards (SARS) and money laundering, and test whether the SARS moderates the association between corruption and money laundering. Design/methodology/approach The sample consists of 348 country-year observations over the period 2015–2017. Data on money laundering are collected from Basel Anti-Money Laundering Reports for 2015–2017, while data on SARS and corruption are collected from the Global Competiveness Reports for the same years. Findings The findings of this study suggest that the SARS is negatively associated with money laundering, while corruption has an insignificant effect on the same variable. The effect of corruption on money laundering becomes positive and significant after removing the SARS. This result implies that the SARS and corruption represent two concurrent forces influencing money laundering phenomenon with a prevailing negative effect for the SARS. When testing for the moderating effect of SARS on the positive association between corruption and money laundering, findings show that the positive association remains stable under low SARS environments, while it is mitigated under high SARS. This moderating effect is further confirmed when using an interaction variable between the SARS dummy variable and corruption as this interaction variable has a negative effect on money laundering. Originality/value The findings emphasize the role played by the SARS in reducing money laundering and mitigating the positive association between corruption and money laundering. These results may have policy implications for governments aiming to combat this phenomenon.

scholarly journals Information Sharing, Bank Penetration and Tax Evasion in Emerging Markets

Risks ◽  
2020 ◽  
Vol 8 (2) ◽  
pp. 38
Author(s):  
Duc Hong Vo ◽  
Ha Minh Nguyen ◽  
Tan Manh Vo ◽  
Michael McAleer
Keyword(s):  
Emerging Markets ◽  
Information Sharing ◽  
World Bank ◽  
Tax Evasion ◽  
International Comparisons ◽  
Tax Compliance ◽  
Policy Implications ◽  
Remote Areas ◽  
Data Requirements

Tax evasion, which is typically considered an illegal activity, is a critical problem and is considered a barrier to economic growth. A review of the literature shows that tax and social security contributions, regulations, public sector services, the quality of institutions and tax compliance, play important roles in determining the degree to which firms attempt to evade taxes. Measuring tax evasion is problematic due to data requirements and inadequacies. Few tax evasion indices have been estimated but it appears that they cannot be used for international comparisons across countries. This important issue has largely been ignored in the literature, in particular for emerging markets. Consequently, this paper is conducted to develop a new tax evasion index (TEI) using the most substantial and recent data from the standardized World Bank Enterprises Survey 2006–2017. In addition, using the newly developed TEI, the paper examines the importance and contribution of information sharing and bank penetration to the degree of tax evasion in emerging markets. The paper uses a sample of 112 emerging markets from 2006–2017 and the Tobit model in estimation. The empirical findings from the paper indicate that the average TEI during the 2006–2017 period for emerging markets is 0.62, with a range of (0.25, 0.75). In addition, we find that information sharing and bank penetration negatively affect the degree of tax evasion, as proxied by the TEI, in emerging markets. The empirical results also confirm the view that large firms are considered to have adopted good tax compliance practices, while firms located in remote areas are more likely to evade taxes. Policy implications have emerged on the basis of the empirical findings from the paper.

Taxpayers’ perceptions on tax evasion behaviour: an empirical study in Malaysia

2017 ◽  
Vol 59 (3) ◽  
pp. 413-429 ◽  
Author(s):  
Chan Pui Yee ◽  
Krishna Moorthy ◽  
William Choo Keng Soon
Keyword(s):  
Social Exchange ◽  
Tax Evasion ◽  
Design Methodology ◽  
Tax Compliance ◽  
Assessment System ◽  
Self Assessment ◽  
Tax System ◽  
Content Type ◽  
The Government ◽  
The Relationship

Purpose The success of self-assessment tax system is voluntary compliance with the tax laws. When tax evasion is seen as unacceptable, taxpayers will tend to evade tax less. Hence, the understanding of taxpayers’ attitude on tax morality towards a tax system has to be enhanced to minimize tax evasion cases. The purposes of this study are to examine the relationship between tax fairness, tax knowledge, enforcement level and social exchange towards taxpayers’ attitude of tax morality under the self-assessment system in Malaysia and also to identify the relationship between taxpayers’ attitude of tax morality and taxpayers’ perceptions on tax evasion. Design/methodology/approach Data were collected from 400 taxpayers through a questionnaire and analysed. Findings From the analysis, it has been found out that tax knowledge is the most important tax system characteristic that affects taxpayers’ attitude of tax morality. In addition, taxpayers’ attitude of tax morality is significant to taxpayers’ perceptions on tax evasion in Malaysia. Originality/value The findings of this study would be useful for the government to further improve the present tax system to increase voluntary tax compliance.

Moderating influence of religiosity on the causality between taxpaying attitudes and tax compliance behaviour of entrepreneurial firms in Nigeria

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lateef Ayodele Agbetunde ◽  
Lukman Raimi ◽  
Olalekan Oladipo Akinrinola
Keyword(s):  
Tax Evasion ◽  
Tax Compliance ◽  
Policy Implications ◽  
Primary Data ◽  
Entrepreneurial Firms ◽  
Linear Regression Models ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Content Type ◽  
Compliance Behaviour

Purpose This paper aims to investigate the moderating influence of religiosity on the effect of taxpaying attitudes on the tax compliance behaviour of entrepreneurial firms in Nigeria. Design/methodology/approach Using a cross-sectional survey design, we collected primary data from 368 owner managers of entrepreneurial firms in Southwest Nigeria using structured questionnaires. Respondents were purposefully selected based on the purposive sampling technique. The data collected with the structured questionnaires were analysed using descriptive and inferential statistics. Two linear regression models were compared. Findings Estimations in Models 1 and 2 suggest that taxpayers’ attitudes and religiosity (intra- and interreligiosity) have significant effects on the tax compliance behaviour of firms, but the influence of intrareligiosity is insignificant. Estimations in Model 3 suggest that taxpaying attitudes without the moderating influence of religiosity exerted a significant effect on tax compliance behaviour by 13%, while taxpaying attitudes with the moderating influence of religiosity exerted 17%. Estimations in Model 4 suggest that taxpaying attitudes with the moderating influence of the interreligiosity dimension had a more significant contribution to the changes in tax compliance behaviour than the intrareligious dimension. Research limitations/implications From the findings, the following policy implications can be deduced: (i) if taxpayers’ attitudes improved and religiosity was leveraged by the tax authorities, tax compliance behaviour of entrepreneurial firms would be induced in Nigeria; (ii) the consistent positive influence is a strong indication that religious values are critical elements of tax compliance interventions that should be considered by policymakers when designing public policies on tax evasion and avoidance in developing countries. Originality/value We bridge the gaps in the literature because our study affirmed that taxes are religiously driven. In addition, the study validates the applicability of theory of planned behaviour in investigating the moderating influence of religiosity on the causality between taxpaying attitude and tax compliance in the developing context.

Political connections, corruption and tax evasion: a cross-country investigation

2019 ◽  
Vol 26 (2) ◽  
pp. 401-411 ◽  
Author(s):  
Hichem Khlif ◽  
Ines Amara
Keyword(s):  
Tax Evasion ◽  
Design Methodology ◽  
Tax Compliance ◽  
Policy Implications ◽  
Political Connections ◽  
Political Connection ◽  
Content Type ◽  
Cross Country

Purpose This paper aims to examine the association between political connections and tax evasion and test whether corruption level affects this relationship. Design/methodology/approach Tax evasion measure is based on Schneider et al. (2010), while country’s political connection trend is based on Faccio (2006). Findings Using a sample of 35 countries, the authors document that political connections are positively associated with tax evasion and this relationship becomes stronger for high corrupt environment. Originality/value The findings have policy implications for countries aiming to combat tax evasion as political connection trends in one country reduce the level of tax compliance. In addition, political connections and corruption play a complimentary role in increasing tax evasion practices.

scholarly journals Relationship of patient shame to working alliance and satisfaction: a preliminary investigation

2019 ◽  
Vol 14 (4) ◽  
pp. 251-263
Author(s):  
Daniel J. Carabellese ◽  
Michael J. Proeve ◽  
Rachel M. Roberts
Keyword(s):  
Patient Satisfaction ◽  
Working Alliance ◽  
Preliminary Investigation ◽  
Community Members ◽  
Content Type ◽  
Mediation Analyses ◽  
External Shame ◽  
Relationship Of ◽  
The Relationship

Purpose The purpose of this paper is to explore the relationship of two distinct variants of dispositional shame (internal and external shame) with collaborative, purpose-driven aspects of the patient–provider relationship (working alliance) and patient satisfaction. The aim of this research was to conduct a preliminary investigation into the relevance of dispositional shame in a general healthcare population. Design/methodology/approach In total, 127 community members (mean age 25.9 years) who reported that they had regularly seen a GP over the past year were recruited at an Australian university. Participants were asked to reflect on their relationship with their GP, and completed instruments assessing various domains of shame, as well as working alliance and patient satisfaction. Findings Non-parametric correlations were examined to determine the direction and strength of relationships, as well as conducting mediation analyses where applicable. Small, negative correlations were evident between external shame and working alliance. Both external and internal shame measures were also negatively correlated with patient satisfaction. Finally, the relationship of external shame to patient satisfaction was partially mediated by working alliance. Practical implications Both the reported quality of patient–provider working alliance, and level of patient satisfaction are related to levels of dispositional shame in patients, and working alliance may act as a mediator for this relationship. Originality/value The findings from this preliminary study suggest that internal and external shame are important factors to consider in the provision of medical care to maximise the quality of patient experience and working alliance.

Quality of learning experience, student satisfaction and perceived overall experience in the COVID-19 context

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Venugopal Prabhakar Gantasala ◽  
Swapna Bhargavi Gantasala ◽  
Tareq Na'el Al Tawil ◽  
Prerana Prasad
Keyword(s):  
Higher Education ◽  
Student Satisfaction ◽  
Online Courses ◽  
Learning Experience ◽  
Decision Makers ◽  
Undergraduate Level ◽  
Content Type ◽  
The Relationship ◽  
Medical Programs

PurposeThe intention for this study was to explore any relationship that might exist between quality of learning experience (QLE), the second construct student satisfaction (SS) and the third construct perceived overall experience (POE) among undergraduate students within the higher education context. This study also attempts to explain the path direction between QLE, SS and POE.Design/methodology/approachThe researchers utilized structural equation modeling to analyze the variables considered for this study – QLE, SS and POE and for hypotheses testing. Respondents for this study were medical students' coordinators of the undergraduate level of medical colleges in the 28 states of India. Data collected for the study were possible by utilizing a questionnaire that was emailed to these student coordinators. The emailing effort returned 198 (n) filled questionnaires (complete) representing 198 institutions offering undergraduate-level medical programs out of a total of 542 institutions that offer undergraduate medical programs.FindingsFindings from this study confirm the relationship between QLE with SS, and PLE. Interestingly, the findings established a significant relationship between SS and POE.Practical implicationsDecision-makers and administrators of higher education institutions (HEIs) can utilize the findings from this study to focus on strengthening important elements of QLE in ways that positively impact SS and POE of students taking online courses and program offerings. The study reiterates the importance of course content, course structure, lecture-delivery quality, instructor mentoring and student-instructor interactions on SS and POE. The role of SS in reinforcing confirmation, perceived usefulness, perceived openness of the online courses and the perceived reputation was established. This relationship is key to administrators while they focus on improving SS and building on the institutions' reputation in addition to their efforts to support marketing and enrollments during the pandemic.Originality/valueResearchers in the past have examined the relationships between QLE and another construct of this study – SS. Past research has also examined the relationship between QLE and POE. However, there is not enough research exploring the relationship between SS and POE. This study establishes the relationship between SS and POE that benefits decision-makers in higher education.

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