Economic Versus Non-Economic Factors: An Analysis of Corporate Tax Compliance

38 Pages Posted: 5 Aug 2011

See all articles by Alexis Downs

Alexis Downs

Emporia State University

Beth Stetson

affiliation not provided to SSRN

Date Written: August 5, 2011

Abstract

Tax compliance has been explored from perspectives of the individual’s rational pursuit of outcome maximization and recently from the perspective of the individual’s personal and social norms. While the former views taxpayers as profit-maximizing rational actors, the latter views taxpayers as moral/social actors. Both streams of research focus on individual non-compliance; but compliance behavior of corporate decision makers may not mimic individual. Our interest is corporate tax compliance. Questions addressed are these: Do corporate decision makers’ compliance decisions accord with economic theory? Do corporate decision makers’ compliance decisions accord with non-economic theories of moral/social norms? Results indicate that the following affect corporate compliance decisions: (1) perceived expected value of transaction; and (2) specific norms regarding the behavior. Results of a hierarchical regression indicate that norms moderate the expected value of the transaction.

Suggested Citation

Downs, Alexis and Stetson, Beth, Economic Versus Non-Economic Factors: An Analysis of Corporate Tax Compliance (August 5, 2011). 2011 American Accounting Association Annual Meeting - Tax Concurrent Sessions. Available at SSRN: https://ssrn.com/abstract=1905075 or http://dx.doi.org/10.2139/ssrn.1905075

Alexis Downs (Contact Author)

Emporia State University ( email )

1200 Commercial Street
Emporia, KS 66801
United States

Beth Stetson

affiliation not provided to SSRN ( email )

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