Search results

This research aims to examine the association between political connection and tax aggressiveness during the COVID-19 pandemic and the role of business ethics in the association between political connection and tax aggressiveness.

This study employs a multiple regression method for 147 manufacturing firms listed on the Indonesia Stock Exchange during the pandemic era.

Political connection has no association with tax aggressiveness. However, political connection has a negative (positive) association with tax aggressiveness in more (less) ethical firms. The results are robust after controlling for year-fixed effects, endogeneity issues and other tax aggressiveness measurements.

Political connection is often cited as the driver of unethical business, including tax aggressiveness. However, this paper claims and finds that political connection is a double-edged sword. Ethical firms use political connection to reduce their tax aggressiveness, and vice versa. Previous research has paid little attention to this topic. This paper also uses COVID-19 as a natural experiment to highlight the importance of corporate social responsibility activities as business ethics.

The aim of this paper is to examine how managerial ability affects corporate tax aggressiveness.

The study follows the work of Demerjian, Lev, and McVay (2012) and quantifies managerial ability by calculating how efficiently managers generate revenues from given economic resources using the data envelopment analysis (DEA) approach. The study uses a wide range of measures of tax aggressiveness. Firm fixed-effects regressions and a difference-in-differences approach using information regarding CEO turnover to control for endogeneity are used.

The study finds a negative relationship between managerial ability and corporate tax aggressiveness. Further tests show that this negative relationship is more pronounced for firms with higher investment opportunities or firms with more reputational concerns.

Given the significant costs associated with tax aggressiveness and the negative effect it can have on managerial reputation if discovered, the results suggest that more able managers invest less effort in aggressive tax avoidance activities. This study furthers the understanding of how managerial personal traits affect corporate decision-making.

The purpose of this paper is to evaluate the relevant literature to gain deeper insights into understanding what directions of research are needed with reference to entrepreneurial orientation and competitive aggressiveness in the oil and gas sector of the Gulf Cooperation Council (GCC) region.

This paper is a conceptual evaluation of literature.

The extant body of research on both entrepreneurial orientation and competitive aggressiveness is based on quantitative studies without previous systematic, exhaustive and comprehensive grounded theory-based theorizing processes rooted in qualitative approaches. This accounts for inconsistencies and controversies of findings reported in the field.

The grounded theory-based approach advocated by this paper is likely to generate a more precise estimation of the relationship between entrepreneurial orientation, competitive aggressiveness and firm performance. Consequently, an accurate understanding of the interplay between these factors can empower managers to make finely-tuned strategic decisions, achieve sustainable competitive advantage and optimally adapt to dynamic and unforeseen environments.

The paper reports on important limitations of the existing literature indicating that current findings may be an artifact of studying a small number of industries.

The purpose of this paper is to investigate whether companies that donate to winning electoral campaigns are more aggressive in terms of tax planning than companies that do not make these contributions. The relationship between politicians and companies may be signaled by political connections in which companies try to get political benefits in exchange for providing politicians with campaign financing. The hypothesis is that a quid pro quo occurs in which these companies benefit from favorable tax treatment that reduces their relative tax burden.

The focus of this study is donations that were made in the presidential elections of 2010 and 2014. The sample covers the period between 2010 and 2016 for companies listed on the B3 Stock Exchange, using proxies for tax aggressiveness computed based on value-added reporting. Through linear regressions, the authors have tested whether the companies that made these campaign contributions tend to have a lower tax burden.

The proposed hypothesis was confirmed, revealing that a political connection between campaign donations reduces the tax burden for donating companies during the years following the election. These donations appear to depict an environment characterized by an exchange of favors in which the donating companies exhibit greater tax aggressiveness than non-donating companies.

The current study deals with a subject that has not yet been examined empirically in Brazil and reinforces the position adopted by the Supreme Court in prohibiting campaign donations to inhibit quid pro quo practices. The study offers additional arguments for the criminalization of the so-called “second set of books” used to record electoral campaign contributions.

The purpose of this paper is to investigate the effects of political connections on the association between firms' business strategy and their tax aggressiveness in an emerging economy such as China.

The authors study a large sample of Chinese public firms from 2011 to 2017 using a panel regression model. In addition, a change analysis, an instrument variable test and alternative measures/samples are implemented as robustness tests.

Firms adopting innovative business strategy are more tax aggressive overall. However, innovative firms with political connections are less tax aggressive compared to those without political connections.

This paper contributes to the understanding of firms' tax behaviors in an emerging economy setting. It suggests that there are costs associated with political connections, such as foregone tax saving opportunities, which are understudies in the prior literature.

This paper investigates the effect of entrepreneurial orientation (EO) on small- and medium-sized enterprises' (SMEs) access to credit. Starting with the idea that SMEs' strategy-making process, structures and behaviour can favour credit access, the authors also explore the moderating role of bank lending technologies in shaping this relationship.

This study relies on a unique survey of Austrian and Italian SMEs which contains detailed information on access to credit, EO dimensions, relationship lending and firm-level characteristics. The authors perform stepwise logistic regressions to assess whether EO interacts with SME's access to finance, and how relationship lending enhances this relationship.

Proactiveness, autonomy and competitive aggressiveness are important constructs for improving access to bank financing. Those dimensions became more important when a relationship bank is involved, suggesting a role for relationship lending in overcoming SMEs' opaqueness. In addition, relationship lending is crucial for innovative SMEs in overcoming credit denial rates.

The small sample did not allow to analyse the effect of EO on discouraged borrowers. Furthermore, alternative measures of relationship lending (such as geographical proximity or the length of the relationship) and the share of credit granted by the relationship bank would have been interesting to further validate our results.

This study shows that EO dimensions and the type of lending technology are relevant for the financial success of SMEs. More precisely, the authors show that diversity within the banking system helps innovative, autonomous, proactive and competitive SMEs. These important pieces of soft information are injected into the final lending decision when a relationship bank is involved. The evidence suggests the need for SMEs to interact with local banks to fully exploit their EO posture.

To the authors' knowledge, this paper is the first attempt to analyse whether relationship lending can affect the EO–credit access relation.

This study aims to examine the influence of the entrepreneurial orientation (EO) dimensions (innovativeness, risk-taking, proactiveness, competitive aggressiveness and autonomy) on the export performance (EXP) of small and medium enterprises (SMEs).

In this study a cross-sectional survey design was used and data were collected from 250 managers of manufacturing-exporting SMEs in Tanzania. The developed conceptual model was empirically tested using confirmatory factor analysis and hierarchical regression.

The results reveal that innovativeness, risk-taking, competitive aggressiveness and autonomy have a significant positive influence on EXP. However, proactiveness hurts EXP. Additionally, findings indicate that the dimensions of EO do not have an equal impact on SMEs’ EXP.

This study only covered SMEs; future studies would be advised to include large firms because they may behave differently with respect EO due to their resource advantages. Furthermore, this study was conducted in a single country, Tanzania, and thus the findings should be interpreted cautiously, since each country has specific institutional frameworks that foster entrepreneurship and entrepreneurial culture in a different way.

The context of this study contributes significantly to the research’s originality. The study contributes to the body of knowledge on the EO-EXP link in developing countries, where research on EO-export is scant, and it further contributes to the debate on the EO-EXP link by demonstrating that the dimensions of EO do not have an equal impact on SMEs’ EXP, and accordingly a disaggregated approach would be more meaningful. Furthermore, the study contributes with regards the role of competitive aggressiveness and autonomy in improving SMEs’ EXP, which has received little attention in previous studies.

This paper aims to study the effect of Hofstede’s cultural dimensions (power distance, individualism, masculinity, uncertainty avoidance and long-term orientation) on corporate tax avoidance as proxied by the effective tax rate.

A sample of 944 observations during 2016 was analyzed at three different quantiles (Q 0.25, Q 0.50 and Q 0.75) based on a quantile regression approach.

Using Hofstede’s (2001) cultural dimensions (power distance, individualism, masculinity, uncertainty avoidance and long-term orientation), the authors find that individualism and masculinity are negatively associated with effective tax rates, and this negative relationship is more pronounced under low tax aggressiveness regime (third quantile). By contrast, long-term orientation is positively associated with the effective tax rate, and this relationship is more prevailing under aggressive tax regime (first quantile). These findings remain stable when using cash effective tax rate as an alternative measure for tax avoidance.

This study adds to the extant literature a further understanding of the impact of cultural dimensions on tax avoidance. The use of quantile regression approach shows how the effect of masculinity, individualism and long-term orientation on tax avoidance varies under different tax management regimes.

We utilize a sample of New Jersey schools to explore the relationship between entrepreneurial orientation (EO) and school performance. The results indicate a significant relationship between several dimensions of EO and performance after controlling for a number of relevant variables. Charter schools were found to have higher EO than traditional schools. The implications of these findings for education and entrepreneurship research are discussed.