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1 – 10 of 11Ahmed Yamen, Anas Al Qudah, Ahmed Badawi and Ahmed Bani-Mustafa
Despite the existence of laws, regulations and sanctions, financial crime remains widespread. The Panama leaks have proven that people from all over the world are…
Abstract
Purpose
Despite the existence of laws, regulations and sanctions, financial crime remains widespread. The Panama leaks have proven that people from all over the world are participating in money laundering and other financial crimes. This study aims to investigate the influence of national culture on financial crimes across 78 countries.
Design/methodology/approach
This study uses Hofstede’s cultural framework as a basis for its hypotheses on financial crime. It also uses the Basel anti-money laundering index as a proxy for measuring the incidence of financial crime across the countries under review.
Findings
The findings show that countries whose cultural profiles are characterized by low uncertainty avoidance, low individualism, high masculinity and low long-term orientation have high rates of financial crime. The finding also shows that countries whose cultural profiles are characterized by individualism or positive collectivism, uncertainty avoidance and long-term orientation have low rates of financial crime.
Originality/value
Laws, regulations and sanctions are not the only factors that can help deter the crime; governments should also take a holistic approach that includes the cultural factors that encourage deterrence.
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Anas Al Qudah, Ahmed Bani-Mustafa and Ahmed Yamen
In this study, the authors aim to investigate the control of corruption (COC) mechanism and the rule of law (ROL) in mediating the effect of culture on terrorism…
Abstract
Purpose
In this study, the authors aim to investigate the control of corruption (COC) mechanism and the rule of law (ROL) in mediating the effect of culture on terrorism financing. Thus, whether the COC and the ROL can mediate the effect of culture on terrorism financing across 78 countries has been examined. This study can provide additional evidence about the importance of having good institutional quality to hinder any deviant behavior like terrorism financing.
Design/methodology/approach
Structural equation modeling is used to test the mechanism of the ROL and COC in mediating the effect of culture on terrorist financing (TF). This research tries to investigate the indirect path of culture in TF through COC and ROL and to examine the role of institutions in motivating or demotivating the deviant behaviors.
Findings
The results revealed that COC and ROL completely mediate the relation between culture and TF. This supports the postulation that there is an indirect relationship between culture and TF. Also, the results indicate that ROL is more powerful than COC, as a governmental tool, in controlling TF.
Originality/value
This paper highlights the fact that, according to authors’ research, this is the first study, to the best of their knowledge, that tests the mechanism of the ROL and COC in mediating the effect of culture on TF actions and money laundry.
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Ahmed Emadeldin Yamen, Hounaida Mersni and Abdulhadi Ramadan
The purpose of this study is to examine the impact of public governance quality on tax evasion levels in old (pre-2004) and new (post-2004) European Union (EU) members…
Abstract
Purpose
The purpose of this study is to examine the impact of public governance quality on tax evasion levels in old (pre-2004) and new (post-2004) European Union (EU) members before and after the 2004 EU-enlargement.
Design/methodology/approach
This study uses panel data of 28 EU countries over the period 1996-2015. Tax evasion is measured using an updated version of the shadow economy size based on the light intensity, as calculated by (Medina and Schneider, 2018). The World Bank’s worldwide governance indicators are used as a measure of public governance.
Findings
The results indicate that new EU members have higher tax evasion levels compared to the old ones before and after the 2004 EU enlargement. The findings also report that the public governance quality is superior in old members throughout the 1996-2015 period. Furthermore, the authors found that after the EU enlargement, tax evasion levels decreased in both EU groups; however, the authors noticed an improvement in the public governance quality in new members and a deterioration in old ones. Additional analysis confirms the impact of public governance quality as an effective tool for reducing tax evasion behavior in both EU groups before and after the EU enlargement.
Practical implications
The findings are potentially useful for EU policymakers in identifying the most effective tools that can minimize tax evasion levels in EU countries. Additionally, the results are alarming as they show the negative consequences of the EU enlargement in old EU members. Thus, policymakers should consider them when setting their rules and regulations to reduce the significant differences between both EU groups to prevent member states from potentially exiting the EU.
Originality/value
To the best of the knowledge, this is the first study that examines the tax evasion behavior and public governance quality in the EU before and after the EU enlargement.
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The purpose of this study is to examine the relationship between tax evasion and COVID-19 public health risk exposure in both high-corruption countries and low-corruption…
Abstract
Purpose
The purpose of this study is to examine the relationship between tax evasion and COVID-19 public health risk exposure in both high-corruption countries and low-corruption countries.
Design/methodology/approach
This study uses cross-sectional data from 138 countries. Tax evasion is measured using the shadow economy size (light intensity approach) as calculated by (Medina and Schneider, 2018). The SolAbility COVID-19 public health risk exposure index (CPHRE) is used to measure COVID-19 health risk. Also, the corruption perception index from transparency international is used for measuring the level of corruption.
Findings
This study finds that the level of tax evasion is positively related to CPHRE. Also, the results revealed a positive relationship between corruption and CPHRE. Furthermore, this study examined the moderation effect of corruption. The results indicate that the positive relationship between tax evasion and public health risk exposure is significant in low-corruption countries, but it is insignificant in high-corruption countries. These results imply that the severity of corruption can increase COVID-19 health risk exposure more than tax evasion.
Practical implications
Our findings are alerting the policymakers for the negative noneconomic consequences of tax evasion and corruption. It provides evidence that tax evasion and corruption can increase CPHRE.
Originality/value
According to the author’s knowledge, this is the first study that examines the relationship between tax evasion and COVID-19 risk and that tests the moderation effect of corruption.
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Ahmed Yamen, Cemil Kuzey and Muhammet Sait Dinc
This paper examines the link between culture, institutional quality and real earnings management and accrual earnings management by combing the study by Hofstede (2001…
Abstract
Purpose
This paper examines the link between culture, institutional quality and real earnings management and accrual earnings management by combing the study by Hofstede (2001) and Enomoto et al. (2015). The paper tries to test the effect of culture on institutional quality and both real earnings management (REM) and accrual earnings management (AEM).
Design/methodology/approach
The sample of the research paper includes 38 countries. Hofstede cultural dimensions are used to measure cultural values. Public governance indicators published by the World Bank are used as a proxy for measuring the institutional quality. Earning management scores constructed by Enomoto et al. (2015, p. 191) are used for measuring real earnings management (REM) and accrual earnings management (AEM). Partial Least Square (PLS) based Structural Equation Modelling (SEM) is used to test the relationship between culture, institutional quality and earnings management.
Findings
The results support the relationship between culture and institutional quality. Also, the results reveal a significant relationship between culture and accrual earnings management, but an insignificant relationship between culture and real earnings management. In addition to that, another important finding is that institutional quality has a significant impact on real earnings management, but has no significant effect on accrual earnings management.
Practical implications
The results suggest that standard setters need to consider the quality of institutions to improve the quality of financial reports. Also, it highlights the role of both formal and informal cultures in shaping financial reports.
Originality/value
For the best of our knowledge, this the first time to test the link between culture and institutional quality and comparing the impact on both real earnings management and accrual earnings management.
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Md. Harun Ur Rashid, Md. Sha Alam Buhayan, Md. Abdul Kaium Masud and Adrian Sawyer
The study examines the effects of governance quality and religiosity on tax evasion (TE) in the OECD (Organisation for Economic Co-operation and Development) countries…
Abstract
The study examines the effects of governance quality and religiosity on tax evasion (TE) in the OECD (Organisation for Economic Co-operation and Development) countries. Further, the study investigates which government qualities and religiosities affect TE significantly. Ordinary least squares has been used to analyze the data gathered from 36 OECD countries covering the period of 2002–2015 based on the latest data of TE. The results show the negative impact of governance quality and religiosity on TE; it implies the higher level of governance quality and religiosity, and the lower level of TE across the countries. Among the governance qualities, the higher the government effectiveness (GE), the rule of law (RL), and regulatory quality (RQ), the lower the level of TE as they have a negatively significant impact on TE. On the contrary, the positive impact of the voice of accountability (VA) and political stability (PS) on TE implies that with increasing the VA and PS, TE also increases. Moreover, during the investigation of religiosities on TE, the study found that Catholics (CATH) have a significant and negative effect on TE, while Muslim (MUSL) is found to be positively significant. Overall findings of the study suggest the government of the OECD countries to emphasize enhancing the governance quality and practicing of peoples' religious activities freely, which demotivates people to evade tax.
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The purpose of this paper is to test for gender-specific effects on odor-induced taste enhancement and subsequent food consumption in olfactory food marketing.
Abstract
Purpose
The purpose of this paper is to test for gender-specific effects on odor-induced taste enhancement and subsequent food consumption in olfactory food marketing.
Design/methodology/approach
Lab experiments conducted among female and male participants using vanillin as a stimulus and ratings of sweetness, taste pleasantness and eating of sugar-free food as measures.
Findings
Odor-induced taste enhancement is gender-specific. Female consumers outperform male consumers in olfactory reaction and sweetness perception. While men outperform women in food consumption.
Research limitations/implications
Odor intensity was set to the concentration level of 0.00005per cent according to the findings from (Fujimaru and Lim, 2013). The authors believe that this intensity level is appropriate for both men and women. Still, there may be some gender effects on intensity levels, which are not explored here. The author’s test for the effects of one personal factor, gender and odor-induced taste enhancement of sugar-free food. The authors think that investigating the combined effects of more personal factors such as age, culture and so on adds to the accuracy of the results.
Practical implications
It seems that the stronger sensory capacities of women in terms of odor detection and recognition already confirmed in the literature extends to the cross-modal effects of this sensory detection and recognition on taste enhancement. It seems appropriate to tailor olfactory food advertising according to the gender of the target audience.
Originality/value
Odor-induced taste enhancement is still a novel subject in marketing. While most of the research has investigated the effects of smelling congruent odors on taste perception and food consumption among mixed groups of men and women, the value of this paper lies in the investigation of the potential moderating effects of gender on this relationship.
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The purpose of this study is to gain knowledge about Muslim consumer’s perceptions toward advertising practices.
Abstract
Purpose
The purpose of this study is to gain knowledge about Muslim consumer’s perceptions toward advertising practices.
Design/methodology/approach
The approach taken was qualitative methodology, using phenomenological method. The qualitative data through semi-structured interviews have been collected from 20 Muslim consumers, 9 participants were women and 11 were men. The interviews lasted between 45 and 60 min. Furthermore, documentation technique was used to cast further insight into the advertising practices and to corroborate other forms of evidence.
Findings
From Muslim consumer perceptions, this qualitative research has generated factors that may be considered in advertising practices. These factors consist of social values (family, tradition and culture), Islamic ethics and rules and regulations. In addition, several practices regarding advertising production were extracted to guide marketers when targeting Muslim consumers.
Research limitations/implications
The generalizability of the findings was limited because of convenience sampling and the small sample size.
Originality/value
This study contributes to the knowledge in the field by exploring factors and practices that should be considered in advertising practices when targeting Muslim consumers.
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The purpose of this paper is to explore the impact of country of origin (COO) information on brand perception and brand image structure.
Abstract
Purpose
The purpose of this paper is to explore the impact of country of origin (COO) information on brand perception and brand image structure.
Design/methodology/approach
Through an analytical review, research hypotheses were built. An empirical investigation was carried out among Japanese consumers. Two brands of electronics with different levels of reputation were investigated.
Findings
Results showed that COO had an effect on brand perception. This effect differs across brands and across countries of production. Brand‐origin appears to be of significant impact on consumer perception. Brand images are found to be multidimensional. Their structures differ across brands and across COO.
Research limitations/implications
COO has multiple effects on brand image perception. Brand image is multidimensional. This research dealt with one type of product among culturally similar respondents which may limit the finding.
Practical implications
Marketing actions should be customized across brands with different levels of reputation. Brand image should be assessed as a multidimensional concept incorporating multiple facets. Consumers are influenced by the brand‐origin. Marketers should be aware of this association.
Originality/value
This research tests the multidimensional aspect of brand image structure and effect of COO information on brand image structure. Results show that COO information affects both the degree of fragmentation of brand image as well as its composition.
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Ketsuree Vijaranakorn and Randall Shannon
This study aims to develop a theoretical concept by examining the country image effects on luxury value perception, a matter past studies have overlooked. Multiple facets…
Abstract
Purpose
This study aims to develop a theoretical concept by examining the country image effects on luxury value perception, a matter past studies have overlooked. Multiple facets of country image, cognitive and affective dimensions, have been developed to evaluate perceived luxury value and purchase intention. However, no prior studies have considered all the types of perceived luxury values: utilitarian value, hedonic value, symbolic value and economic value, considered in relation to cognitive and affective country image in an emerging country’s market. Accordingly, this study has attempted to explore the ways Thai luxury consumers perceive the image of the country and the influence of the perceived value of Thai luxury brands, to learn which country attributes strengthen the luxury brand’s value and customers’ purchase intention.
Design/methodology/approach
A total of 407 Thai respondents, who were luxury-product consumers who knew and previously had bought either Thai luxury brands or global luxury brands, comprised the final sample examined. Structural Equation Modeling was employed in this research to test the research hypotheses. The structural model proposed a causal relationship between two endogenous constructs, cognitive and affective country images, and five exogenous constructs: utilitarian value, hedonic value, symbolic value, economic value and purchase intention.
Findings
The findings confirmed that countries are like brands in that the perceived image of each country’s aspects, cognitive and affective, influences the perceived value in each dimension differently, and so affects purchase intention. This implies that the evaluation of perceived quality or perceived value for money, as in past studies, cannot accurately demonstrate what particular benefits consumers receive when they utilize the country-image cue. Country image has both symbolic and emotional significances for consumers. The findings have provided a more precise measure of the effects of country image as well as important information on country positioning the in the world market.
Research limitations/implications
There are some limitations in this study. The reliance on Thai samples from one city has limited the generalizability of the findings. Moreover, this study considered only one country of brand origin, and only one product category has been chosen as the stimulus, which together are the major limitations of this study. Future research could also consider further testing country image effects on value perception with other extrinsic attributes, rather than using a single cue, as this study did. Additionally, antecedent variables that may have an influence on country-image effects should be considered in future studies.
Practical implications
The relation of country image and value perception could help both governments and companies support their national brands more effectively, or to export products in accordance with the image aspect that most strongly impacts consumers’ positive perception of value. Moreover, it would be valuable for companies producing luxury products to know which country attributes strengthen the brand’s value. Luxury-brand managers will have to take these aspects into consideration when developing their communications strategies (Krupka et al., 2014).
Originality/value
There is a lack of research as regards the impact of a brand name’s perceived origin on the luxury perception associated with that brand (Salciuviene et al., 2010). This research is the first to investigate the theoretical framework of luxury value perception found in relation to cognitive and affective country images. From an academic perspective, this study sought to increase the theoretical research relating to the ambiguous conceptualization of the country-image effect on consumers’ perception of value in luxury products. Additionally, the relation of country image to luxury value perception could help both governments and companies support their national luxury brands more effectively, or to export luxury products in accordance with the image aspect that most strongly impacts consumers’ positive perception of value.
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