To pay or not to pay? Business owners’ tax morale:testing a neo-institutional framework in a transition environment

Mickiewicz, Tomasz, Rebmann, Anna and Sauka, Arnis (2017). To pay or not to pay? Business owners’ tax morale:testing a neo-institutional framework in a transition environment. Journal of Business Ethics, in pre ,

Abstract

In order to understand how the environment influences business owner/managers’ attitudes towards tax morale, we build a theoretical model based on a neo-institutionalist framework. Our model combines three complementary perspectives on institutions—normative, cultural–cognitive and regulatory–instrumental. This enables a broader understanding of factors that influence business owner–managers’ attitudes towards tax evasion. We test the resulting hypotheses using regression analysis on survey data on business owner/managers in Latvia—a transition country, which has undergone massive institutional changes since it was part of the Soviet Union over 25 years ago. We find that legitimacy of the tax authorities and the government (normative dimension), feeling of belonging to the nation (cultural–cognitive dimension) and perceptions of the risk and severity of punishment (regulatory–instrumental dimension) are all associated with higher tax morale for business owners and managers.

Publication DOI: https://doi.org/10.1007/s10551-017-3623-2
Divisions: Aston Business School > Economics finance & entrepreneurship
Aston Business School
Additional Information: © The Author(s) 2017. This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.
Uncontrolled Keywords: entrepreneurship,informal economy,identity,institutions,new institutionalism,business owners/managers,tax evasion,tax morale,trust,Business and International Management,Business, Management and Accounting(all),Arts and Humanities (miscellaneous),Economics and Econometrics,Law
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Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
Published Online Date: 2017-07-18
Authors: Mickiewicz, Tomasz ( 0000-0001-5261-5662)
Rebmann, Anna ( 0000-0002-7766-1101)
Sauka, Arnis

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