Quality of management schools, strength of auditing and reporting standards and tax evasion: A cross-country analysis
ISSN: 1450-2194
Article publication date: 8 June 2018
Issue publication date: 30 July 2018
Abstract
Purpose
The purpose of this paper is to examine the relationship between the quality of management schools and tax evasion and tests whether the strength of auditing and reporting standards moderates such a relationship.
Design/methodology/approach
Tax evasion is measured using the macro-indirect approach based on Schneider, Buehn and Monterngro (2010). The quality of management schools is collected from The Global Competitiveness Report for 2014-2015.
Findings
On the basis of sample of 137 countries, the authors document that the level of tax evasion is negatively associated with the quality of management schools and the strength of auditing and reporting standards. When the authors distinguish between low- and high-strength of auditing and reporting standards countries, the authors find that the negative and significant association remains stable only for high-strength of auditing and reporting standards countries.
Practical implications
These results imply that the quality of management schools through its output (managers, fiscal controllers, auditors and businessmen) may increase the tendency of individuals in a given country to comply with tax rules and that legal enforcement may affect the ethical behaviours of these actors with regard to tax evasion.
Originality/value
The empirical findings have policy implications for governments with high levels of tax evasion since they highlight the importance of the quality of higher educational system in shaping tax compliance behaviour.
Keywords
Citation
Khlif, H. and Guidara, A. (2018), "Quality of management schools, strength of auditing and reporting standards and tax evasion: A cross-country analysis", EuroMed Journal of Business, Vol. 13 No. 2, pp. 149-162. https://doi.org/10.1108/EMJB-05-2017-0017
Publisher
:Emerald Publishing Limited
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