Competition and corporate tax evasion: An institution-based view
Why do firms evade taxes? We tackle this question by studying firms in the formal sector operating in countries with different institutional backgrounds, and comparing the incentives and constraints of staying within the formal sector against the competitive pressures originating from the informal s...
| Main Authors: | , , |
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| Format: | Journal Article |
| Published: |
Pergamon
2016
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| Online Access: | http://hdl.handle.net/20.500.11937/49983 |
| _version_ | 1848758365929340928 |
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| author | Gokalp, O. Lee, S. Peng, Mike |
| author_facet | Gokalp, O. Lee, S. Peng, Mike |
| author_sort | Gokalp, O. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | Why do firms evade taxes? We tackle this question by studying firms in the formal sector operating in countries with different institutional backgrounds, and comparing the incentives and constraints of staying within the formal sector against the competitive pressures originating from the informal sector. We argue that it is the combination of these factors that largely explains formal firms' tax evasion decisions. Our findings highlight the dark side of competition, particularly when it originates from perceivably unfair sources (i.e. from the informal sector). We also shed light on how this effect is moderated by the institutional conditions of the environment. |
| first_indexed | 2025-11-14T09:42:50Z |
| format | Journal Article |
| id | curtin-20.500.11937-49983 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T09:42:50Z |
| publishDate | 2016 |
| publisher | Pergamon |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-499832017-09-13T15:37:02Z Competition and corporate tax evasion: An institution-based view Gokalp, O. Lee, S. Peng, Mike Why do firms evade taxes? We tackle this question by studying firms in the formal sector operating in countries with different institutional backgrounds, and comparing the incentives and constraints of staying within the formal sector against the competitive pressures originating from the informal sector. We argue that it is the combination of these factors that largely explains formal firms' tax evasion decisions. Our findings highlight the dark side of competition, particularly when it originates from perceivably unfair sources (i.e. from the informal sector). We also shed light on how this effect is moderated by the institutional conditions of the environment. 2016 Journal Article http://hdl.handle.net/20.500.11937/49983 10.1016/j.jwb.2016.12.006 Pergamon restricted |
| spellingShingle | Gokalp, O. Lee, S. Peng, Mike Competition and corporate tax evasion: An institution-based view |
| title | Competition and corporate tax evasion: An institution-based view |
| title_full | Competition and corporate tax evasion: An institution-based view |
| title_fullStr | Competition and corporate tax evasion: An institution-based view |
| title_full_unstemmed | Competition and corporate tax evasion: An institution-based view |
| title_short | Competition and corporate tax evasion: An institution-based view |
| title_sort | competition and corporate tax evasion: an institution-based view |
| url | http://hdl.handle.net/20.500.11937/49983 |