Intention to pay taxes or to avoid them: The impact of social value orientation

Brizi, Ambra; Giacomantonio, Mauro; Schumpe, Birga M.; Mannetti, Lucia

doi:10.1016/j.joep.2015.06.005

Cited by 45 publications

(42 citation statements)

References 56 publications

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“…In terms of odds, this means that a politician with 100% stock has over double the odds of becoming involved in a scandal the next year than a politician with 100% bonds. 5 Motivated by our measure of risk preferences seeming stable over time, we conduct our analysis henceforth by collapsing the panel to a cross section and focusing on the logit model results; linear and Probit models provide very similar results. Table 4 reports these cross section results.…”

Section: Resultsmentioning

confidence: 99%

Risk Preferences and Misconduct: Evidence from Politicians

Minor

2015

AMPROC

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When seeking new leaders, business and government organizations alike often need individuals that are less risk averse, or even risk-seeking, in order to improve performance. However, individuals amenable to increased risktaking may be more likely to engage in misconduct. To study this issue, we explore US political scandals and the implicated politicians'portfolio choices.We …nd that a politician allocating all of her portfolio to risky investments has double the odds of being involved in a political sandal compared to a politician allocating all of her portfolio to safe investments. This suggests that those who are more willing to take risks in their personal …nances are also more likely to engage in misconduct. We validate portfolio choice as a measure of risk preferences by correlating actual high-stakes investment choices (average $700,000 US) to conventional laboratory lottery choices (average $51 US) of wealthy investors.

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Section: Resultsmentioning

confidence: 99%

Risk Preferences and Misconduct: Evidence from Politicians

Minor

2015

AMPROC

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“…This corresponds to different ways of "acquiring" personal and subjective norms. The former are internalized convictions as to what the "right" behavior is, imprinted in the course of the socialization process and linked to other permanent social value orientations (Brizi et al 2015). They thus should be subject to little change and show little variability over the tax payer's life course.…”

Section: Norms As Determinants Of Tax Compliancementioning

confidence: 99%

Social Norms Moderate the Effect of Tax System on Tax Evasion: Evidence from a Large-Scale Survey Experiment

Górecki

Letki

2020

J Bus Ethics

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In this study, we reconcile conflicting findings from the extant literature on the impact of tax system parameters on tax noncompliance. We argue that social norms play a role of heuristics facilitating tax payers' response to the instrumental incentives posed by the systemic parameters, such as tax rate and penalties for evasion, and thus moderate the effect of those parameters on willingness to evade taxes. Relying on a unique survey experiment conducted in fourteen countries of Central-Eastern Europe, we demonstrate two types of a conditioning effect of norms. First, the impact of tax rates on respondents' propensity for tax evasion is moderated by the perceived norms of the society at large (descriptive norms). In particular, an increasing tax rate lowers the probability of evasion as long as one views "most others" as honest taxpayers, which highlights the importance of equitability (fairness) concerns for tax compliance decisions. In contrast, the impact of punishment is moderated by the perceived norms of one's immediate reference group (subjective norms). Strong subjective compliance norms tend to effectively replace penalties as a mechanism discouraging tax evasion, suggesting that the deterrent effect of a penalty can be entirely suppressed when subjective norms are strong. These findings have important implications for the understanding of tax compliance decisions under different formal and informal regimes.

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“…Most early research on taxpayer compliance focused primarily on economic variables such as the perceived likelihood of audits and penalty rates (e.g., Andreoni et al, ; Reinganum & Wilde, ; Trivedi, Shehata, & Lynn, ; Witte & Woodbury, ). However, as researchers came to realize that economic variables alone cannot provide satisfactory explanations of decisions to evade taxes, they increasingly turned to social psychological influences to help explain such behavior (Blanthorne & Kaplan, ; Brizi, Giacomantonio, Schumpe, & Manetti, ; Sidani, Ghanem, & Rawwas, ) . As observed by Sidani et al (), among other limitations economic models could not explain why tax compliance rates were relatively high even in jurisdictions where the risk of being audited and detected was very low.…”

Section: Introductionmentioning

confidence: 99%

Machiavellianism, social norms, and taxpayer compliance

Shafer¹,

Wang

2017

Business Ethics: A Eur Rev

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This study is the first to examine the relationships among Machiavellianism, social norms and taxpayer intentions to fraudulently overstate their deductions. We theorize and empirically document that (a) high Machiavellian taxpayers report significantly less ethical social norms, suggesting that reported social norms are influenced by cognitive biases such as social projection and Machiavellian cynicism; (b) reported social norms are, in general, significantly associated with tax evasion intentions; (c) social norms partially mediate the relationship between Machiavellianism and evasion intentions. Our findings imply that experimental research that controls for key personality traits such as Machiavellianism will be necessary to test the effectiveness of potential interventions designed to enhance social norms and tax compliance. Our findings also raise questions regarding the validity of certain social norm measures used in recent studies, particularly in the case of high Machiavellians. In contrast to much prior research, gender was not associated with the likelihood of committing tax fraud in our multivariate models, suggesting that the higher levels of tax compliance often associated with females may be eroding.

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Intention to pay taxes or to avoid them: The impact of social value orientation

Cited by 45 publications

References 56 publications

Risk Preferences and Misconduct: Evidence from Politicians

Risk Preferences and Misconduct: Evidence from Politicians

Social Norms Moderate the Effect of Tax System on Tax Evasion: Evidence from a Large-Scale Survey Experiment

Machiavellianism, social norms, and taxpayer compliance

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