scholarly journals Economic crisis and “white informal economy” – a slippery slope

2017 ◽  
Vol 37 (7/8) ◽  
pp. 468-476 ◽  
Author(s):  
Bojan Dobovšek ◽  
Boštjan Slak
Keyword(s):  
Financial Crisis ◽  
Informal Economy ◽  
Tax Evasion ◽  
Policy Development ◽  
Tax Avoidance ◽  
Economic Activities ◽  
Content Type ◽  
Economic Practices ◽  
Legal Forms

Purpose The purpose of this paper is to demonstrate the importance of studying the quasi-legal forms of informal economic behaviour that we know as the white informal economy. The paper also sheds light on the role of the informal economy in the financial crisis that started in 2008. Finally, the aim of the paper is also to encourage empirical research about these concepts. Design/methodology/approach The paper is theoretical and based on a literature review. Findings The paper implies that when discussing about informal economy, different sub-categories should continue to be used in order to distinguish the various forms of informal economic practices. There is a particular need for research on practices of economic activities that are legal but not always moral, yet severely damaging. For such activities, the authors propose the term/categorisation the “white informal economy”. Additionally, the authors argue that in the causal links of events that brought about the financial crisis the role of the white informal economy was significant. Practical implications The paper wishes to encourage further research on the topic of (white) informal economy that in turn would also create the scenario for proper policy development for tackling tax avoidance, tax evasion and future financial crises. Originality/value The paper adds to scholarship that takes a critical standpoint towards the financial crisis and to scholarship on the informal economy. It presents an attempt to stimulate further discussion about the connectivity of the informal economy and the financial crisis.

Muslim women contribution to economic activities: a viewpoint

2016 ◽  
Vol 7 (1) ◽  
pp. 2-5 ◽  
Author(s):  
Yvonne Ridley
Keyword(s):  
Adam Smith ◽  
Muslim Women ◽  
Economic Activities ◽  
Content Type ◽  
Economic Role ◽  
Women In Business ◽  
Keynote Speech ◽  
The University ◽  
Practical Implications

Purpose – The purpose of this paper is to highlight the role of Muslim women in economic activities. Design/methodology/approach – The paper is a historical account on the important role played by Muslim women in business and governance during the Islamic formative years. Findings – While women in the West still struggle with the rights to equal position and pay till today, Islamic teaching provides Muslim women with the rights to earn and spend as they wished as well as selected to lead economic activities based on their personal merit and wisdom. Practical implications – The paper highlights that Islamic Sharia does not discriminate Muslim women economically nor socially as often portrayed in the Western media. Islam outlines the specific rights and obligations of men and women to ensure development of a healthy society. Social implications – Society should appreciate that Islamic Sharia work out favourably for women. They are trusted to lead based on their own merit and wisdom and not for their beauty. Originality/value – This is a keynote speech delivered at the Islamic Perspective of Accounting, Finance, Economics and Management (IPAFEM) 2015 conference: 7th-9th April, Adam Smith Business School, The University of Glasgow – on the economic role played by early Muslim women.

scholarly journals Informal economic relations and organizations

2015 ◽  
Vol 28 (5) ◽  
pp. 749-769 ◽  
Author(s):  
Yochanan Altman ◽  
Claudio Morrison
Keyword(s):  
Informal Economy ◽  
Cultural Theory ◽  
Health And Safety ◽  
Negative Control ◽  
Social Implications ◽  
Soviet Period ◽  
Economic Activities ◽  
Content Type ◽  
Economic Relations ◽  
Labour Process

Purpose – The purpose of this paper is to identify the role of informal economic relations (IER) in the day-to-day working of organizations, thereby opening a way to theorizing and informed practice. The authors will present and discuss about the manifestation of informality in “everyday” reality of Soviet and transformation economies. Informed by Cultural theory and in particular the work of Gerald Mars, the authors are taking account ontologically and methodologically of Labour process theory. Design/methodology/approach – Through presentation of ethnographic data of detailed accounts and case vignettes in production and retail in the Soviet period of the late 1970s and 1980s and from the construction sector in contemporary Russia, with a focus on the labour process, the authors inform and discuss key processes in the informal working of organizations. Findings – In the Soviet system the informal economy co-existed in symbiosis with the formal command economy, implicitly adopting a “live and let live” attitude. In addition, informal relations were essential to the working of work organizations, sustaining workers’ “negative control” and bargaining power. contemporary Russian capitalism, while embracing informal economic activities, a legacy of the Soviet period, advocates an “each to his own” approach which retains the flexibility but not the bargaining space for employees. That facilitates exploitation, particularly of the most vulnerable workers, with dire consequences for the work process. Research limitations/implications – The paper provides a platform for theorizing about the role and place of IER in organizations. Of importance to managerial practice, the paper informs on those aspects of the work routine that remain hidden from view and are often excluded from academic discourse. The social implications are profound, shedding light on central issues such as recruitment, income distribution, health and safety and deregulated forms of employment. Originality/value – The paper examines economic behaviour under different economic-political regimes demonstrating continuities and changes during a fundamental social-economic reorientation of an important regional economy, through close observation at the micro and meso-level of, respectively, the workplace, organizations and industry, outlining theoretical, practical and social implications.

The role of customers and employees in the buffer effect of corporate social responsibility in times of crisis

2020 ◽  
Vol 46 (7) ◽  
pp. 955-975 ◽  
Author(s):  
Dorra Ellouze
Keyword(s):  
Financial Crisis ◽  
Negative Impact ◽  
Employee Productivity ◽  
Negative Events ◽  
Buffer Effect ◽  
2008 Financial Crisis ◽  
Content Type ◽  
Cooperative Relationships ◽  
The 2008 Financial Crisis

PurposeThe purpose of the paper is to investigate the role of customers and employees in the buffer effect of CSR around the 2008 financial crisis in the European context.Design/methodology/approachUsing a sample of 323 European firms listed in STOXX Europe 600 Index, different models are estimated to test whether the effect of CSR ratings on firms' relationships with their customers and employees could be different during the 2008 financial crisis relative to the pre-crisis and post-crisis periods.FindingsThe paper shows that CSR rating has a significantly negative impact on firms' accounts receivable and a significantly positive effect on employee productivity during the crisis period (from 2007 to 2009). However, there is no significant effect of CSR rating during the non-crisis periods. These results suggest that during negative events, customers are willing to continue supporting high-CSR firms by paying their invoices faster. Furthermore, these firms benefit from higher productivity of their employees who are willing to work harder in periods of uncertainty.Research limitations/implicationsFirms should invest in CSR practices to maintain strong and cooperative relationships with their customers and employees. Also, investors should choose firms engaging in more social capital. Moreover, policymakers should encourage implementing CSR practices which act as an insurance-like protection in times of negative events.Originality/valueThis paper adds to the previous studies by investigating whether the cooperative role of customers and employees can explain the buffer role of CSR around the crisis. Furthermore, it considers companies located in several European countries for a long period (from 2004 to 2012) to compare periods of crisis and non-crisis.

Fair value accounting and the financial crisis: a literature-based analysis

2016 ◽  
Vol 14 (1) ◽  
pp. 49-71 ◽  
Author(s):  
Elisa Menicucci ◽  
Guido Paolucci
Keyword(s):  
Financial Crisis ◽  
Literature Review ◽  
Empirical Studies ◽  
Relevant Literature ◽  
Fair Value ◽  
Research Literature ◽  
Fair Value Accounting ◽  
Comprehensive Overview ◽  
Content Type

Purpose The aim of this paper is to review the main results of accounting research literature examining the role of fair value accounting (FVA) within financial crisis. This research analyzes theoretical and empirical studies on the controversial topic about FVA and its alleged pro-cyclicality in the context of the financial crisis to offer solid reflections for improving the fair value research agenda. Design/methodology/approach This paper consists of a descriptive literature review. Theoretical and empirical research studies were investigated and then systematized in a framework to guide a literature-based analysis and critique of the relevant literature published about this topic. Findings The review reveals that there has been only a limited amount of research into the role of FVA within the financial crisis. This topic has not been researched extensively, and there is no empirical evidence that FVA caused the financial crunch and the subsequent financial crisis. Research limitations/implications The restricted amount of literature that directly deals with FVA in the context of the financial crisis is the main limitation of this paper. The specificity of the theme narrows the coverage. However, the adopted research methodology enabled the main contributions concerning this issue to be collected, to realize a concise and comprehensive portrait of the debate surrounding FVA and the financial crisis. Practical implications This paper can be of use to both researchers and practitioners interested in investigating strengths and weaknesses of the fair value concept for accounting purposes. The paper sets out the main findings of the academic literature and identifies future avenues of theoretical and practical research which may support standard setters to draw up improved accounting regulation. Originality/value Few existing studies consist of a literature review that examines theoretical and empirical researches on the influence of FVA on the financial system. This review offers a comprehensive overview on research literature concerning the responsibility of FVA in causing the financial crisis. The main contribution of this paper relates to further understanding the role and effects of accounting matters concerning fair value in a broad sense within the context of the financial crisis.

scholarly journals LEGAL CHALLENGES AFFECTING OFFSHORE TRUSTS POST 2008 FINANCIAL CRISIS

2014 ◽  
Vol 22 (2) ◽  
Author(s):  
Mohsin Hingun
Keyword(s):  
Financial Crisis ◽  
Tax Evasion ◽  
Tax Avoidance ◽  
Critical Examination ◽  
Hostile Environment ◽  
2008 Financial Crisis ◽  
Legal Challenges ◽  
The Media ◽  
The 2008 Financial Crisis

The phenomenal growth of offshore trusts valued in billions of dollars at the end of the last century as a result of its ability to attract, transfer and protect substantial sums of money from the settlor’s country to overseas jurisdictions with the potential to save, reduce, avoid and evade taxes have been subjected to critical examination by tax authorities, the courts, non-governmental organisations and the media, especially in the years following the 2008 financial crisis. The objective of this paper to briefly introduce the nature and uses of offshore is trusts and to focus on some of the important challenges they face in a hostile environment. An area of evolving interest is the secrecy issue inherent in offshore trusts which has been abused as a veil for tax avoidance/tax evasion.

scholarly journals Evaluation of tax audit strategies

2013 ◽  
pp. 52-59
Author(s):  
Gintarė Giriūnienė ◽  
Raminta Benetytė
Keyword(s):  
Informal Economy ◽  
Tax Evasion ◽  
Tax Avoidance ◽  
Additional Information ◽  
Increased Risk ◽  
Verification Time ◽  
Tax Audit ◽  
Point Line ◽  
A Company ◽  
Plane Point

It should be noted that the tax audit topic is relevant – during the last years quantity of tax audits accomplished by state authorities is still growing. Especially in this way is attempted to combat against tax avoidance and evasion, informal economy prevailed in the country. For committing it only helps to have regular inspections of taxpayers i.e. tax audits. Tax audits are divided under the verification time, as it is classified into a complex, a thematic inspection and an operational check. However, despite the existing differences between the various types of tax audit, a key moment of choosing strategy is a tax audit organization. In practice there are distinguished two tax audit strategies – “line-plane-point“ and “point-line-plane“. The first one indicates that before the initial analysis of data examination, it is necessary to investigate whether the company's tax accounting does not have indications for increased risk of error existence. For its practical application is necessary to execute a thorough collection and analysis of the evidence, and the most important is objective and correct assessment of indicators for an increased risk of errors. For this purpose suspicious taxpayers usually are selected and under the tax audit all of the data that can distort selected dubious indicators are checked. In application of the second strategy, if the execution of a company is suspected of tax evasion, it will be forwarded to the additional tax audit services, which will continue the investigation and will explore the additional information. Accomplished practical research have shown that the more of these indicators are observed during initial tax audit stage, the “point-line-plane“ method is more likely to be chosen. Accordingly, to choose one or another tax strategy correctly and adapt it properly it is necessary to take into account the indicators linked to the need for a tax audit.

scholarly journals Albanian Individual Taxpayers Perceptions and Determinants on Ethical Behavior Regarding Tax Compliance

2021 ◽  
Vol 5 (1) ◽  
pp. 66-80
Author(s):  
Michael J. Salé ◽  
Oltiana Muharremi ◽  
Meleq Hoxhaj
Keyword(s):  
Informal Economy ◽  
Tax Evasion ◽  
Essential Element ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Analysis Data ◽  
Tax Rates ◽  
Factors Affecting ◽  
Logical Sequence ◽  
In The Beginning

Tax evasion and tax avoidance are among the most addressed topics in economic literature in recent years, as one of the most discussed issues in different countries. The research’s primary purpose is to present Albanian residents’ and taxpayers’ perceptions regarding tax evasion, tax avoidance, and tax compliance. The leading indicators used in this report, the attitude towards tax evasion and tax avoidance, rely on individual taxpayers’ perceptions and not on factual evidence such as the amount of income hidden from the tax authorities. Several studies have been done in different countries regarding the population’s perception regarding factors affecting evasion. In this paper, we investigated the following logical sequence: in the beginning, we provided an overview of the fiscal system and legislation, informal economy, and fiscal evasion in Albania. This analysis data was taken from reports from national and international organizations. After this, we analyzed data obtained from a survey issued to 387 taxpayer individuals in Albania. Our objective was to identify, using empirical analysis, factors that influence an individual’s ethical perception of tax avoidance and evasion. The statistical analyses we carried out in the paper were factor analyses and ordinal logistic linear regression analyses using the JMP statistical software. Based on the empirical research, we concluded that government policies positively correlate with taxpayers’ behavior regarding tax compliance. Among other determinants influencing tax evasion, we have evaluated that higher tax rates are an essential element. The results of the research can be helpful for governments and other policymakers’ institutions.

Institutional complexity and CSR practices: evidence from a developing country

2020 ◽  
Vol 10 (4) ◽  
pp. 655-680
Author(s):  
Ahmed Diab ◽  
Abdelmoneim Bahyeldin Mohamed Metwally
Keyword(s):  
Political Institutions ◽  
Institutional Environment ◽  
Economic Activities ◽  
Content Type ◽  
Theoretical Concepts ◽  
Present Complex ◽  
Micro Level ◽  
Economic Perspectives ◽  
Corporate Social

PurposeThe study aims to investigate the appearance of corporate social and environmental responsibility (CSER) practices in a context where economic, communal and political institutions are highly central and competing with each other.Design/methodology/approachTheoretically, the study draws upon the institutional logics perspective and the theoretical concepts of logics centrality and compatibility to understand how higher-order institutions interact with mundane CSER practices observed at the case company's micro level. Empirical data were solicited in an Egyptian village community, where fishing, agriculture and especially salt production constitute the main economic activities underlying its livelihood. A combination of interviews, informal conversations, observations and documents solicits the required data.FindingsThereby, this study presents an inclusive view of CSER as practiced in developing countries, which is based not only on rational economic perspectives – as is the case in developed and stabilised contexts – but also on social, familial and political aspects that are central to the present complex institutional environment.Originality/valueThe reported findings in this study highlight the role of non-economic (societal) logics in understating CSER in African developing nations.

Impulse behavior in economic crisis: a data driven market segmentation

2019 ◽  
Vol 47 (9) ◽  
pp. 974-996 ◽  
Author(s):  
Christina Boutsouki
Keyword(s):  
Cluster Analysis ◽  
Financial Crisis ◽  
Financial Hardship ◽  
Impulsive Behavior ◽  
Content Type ◽  
Behavior Understanding ◽  
Impulse Purchases ◽  
Atmospheric Factors ◽  
The Impact

Purpose Clustering is a highly popular and widely used tool for identifying data-based market segments. The purpose of this paper is to apply cluster analysis to identify homogeneous subgroups among impulse buyers based on their demographic characteristics and their preference of atmospheric elements. Design/methodology/approach Based on a survey approach with 480 fashion consumers, the study discusses impulse purchases during financial crisis. SPSS process is used to determine the effect of atmospherics on impulse purchases as well as the moderating role of demographics. Cluster analysis (k-means method) is used to determine specific segments of impulsive consumption. Findings Despite a significant effect of atmospherics on consumers’ impulsiveness, the frequency of purchases is not significantly affected indicating that the economic environment may shape impulsive behavior. Gender, age and education seem to moderate the above relationship. Demographics and store atmospherics define specific segments of impulse buyers. Research limitations/implications The study identifies the clusters formed through the interaction of atmospherics with demographics. It further identifies the impact of atmospheric factors in the case of an economy in crisis. In times of financial hardship, store atmospherics, although appealing, do not seem to adequately promote impulse buying behavior. Understanding consumer’s impulsive behavior based on distinctive profiles is of outmost importance to retailers seeking to increase consumption, in particular under conditions of financial hardship. Originality/value The present study explores the role of environmental characteristics on consumers’ impulse behavior amidst a financial crisis and identifies the characteristics of specific segments of consumption.

Decreasing work-related movement during a pandemic. Location analytics and the implications of the digital divide

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Joseph Taylor ◽  
Rickey Taylor
Keyword(s):  
Public Health ◽  
Digital Divide ◽  
Economic Activities ◽  
Content Type ◽  
Work Related ◽  
Movement Data ◽  
Digital Infrastructure ◽  
Positive Externalities ◽  
Travel Restrictions

Purpose The purpose of this study is to examine the role of digital infrastructure in supporting compliance with travel restrictions. The purpose of this study is to examine the role of digital infrastructure in supporting compliance with travel restrictions. In response to the COVID-19 pandemic, countries around the world have issued “stay-at-home” orders and curtailed a variety of economic activities. As countries have adopted aggressive policies to limit the spread of COVID-19, varying levels of national infrastructure to provide internet access have limited some nations’ ability to reduce travel requirements. As national policies struggle to address public health issues, location analytics enabled by big data provide unique insights regarding the efficacy of digital infrastructure. These insights can provide valuable tools to public health officials and regulators in understanding how health recommendations are implemented within an economy. Design/methodology/approach This study analyzes mobile phone movement data during the first half of 2020 and finds that countries that provided greater access to internet capabilities were better able to reduce work-related mobility. Findings This study’s findings indicate that greater levels of digital infrastructure may better prepare countries to adapt to societal disruptions such as COVID-19. Practical implications This study’s findings demonstrate that public health controls regarding movement and person-to-person interaction are less likely to be effective in nations with weaker digital infrastructure, even after accounting for variation attributable to gross domestic product (GDP) and pandemic severity. This could limit public health options in developing countries when faced with future socially disruptive events and encourage national investment in digital infrastructure. Social implications This study’s findings highlight positive externalities associated with reducing the digital divide. Developing better digital business infrastructure globally may reduce human exposure to future pandemic risks. Originality/value This research demonstrates the practical development implications of analysis of aggregate data widely available through mobile technology. As institutions develop techniques to ethically and effectively analyze this data, greater opportunities to support economic development may be revealed.

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