Local gambling culture and corporate tax aggressiveness: A trait activation perspective on informal institutions

Abstract

Based on the theory of new institutionalism and trait activation, we empirically evaluated the role of gambling culture on aggressive corporate taxation. A positive association was found between gambling culture and tax aggressiveness, the gambling culture increased the risk preferences of firm executives. The relationship was more pronounced in non‐state‐owned firms, firms with a high proportion of male executives, shortsighted executives, local CEOs, and those located in areas with less intense tax regulation and lower levels of Islamic faith. The findings enrich studies investigating the economic consequences of gambling culture and provide innovative ideas for external regulators to formulate anti‐avoidance measures.

The role of contextual factors in avenues to recover from gambling disorder: a scoping review

“…Variations in cultural norms and gambling regulations across regions may also contribute. For instance, in areas with strict gambling laws, like many Middle Eastern countries, conducting gambling research is likely less feasible ( Aldhehayan and Tamvada, 2023 ; Zeng et al, 2023 ). Additionally, in less affluent countries, pressing issues like poverty and inadequate healthcare infrastructure are likely to take precedence.…”