SME tax avoidance in the presence of informal competition from shadow economy

IF 0.9 Q3 BUSINESS, FINANCE
Omar Farooq, Mohamed Elbannan
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引用次数: 0

Abstract

Using the data for Indian SMEs, this paper examines in an emerging market setting whether firms with exposure to informal competition are more likely to avoid taxes. We use a sample of 9281 Indian firms that responded to the World Bank Enterprise Survey and find empirical evidence that supports this conjecture. We find that firms headquartered in states/provinces with better business environment and firms with more competitive position in the market are less likely to avoid taxes in response to informal competition. This paper also shows that firms that avoid taxes are more likely to invest in innovation and have more efficient operations than the firm that does not avoid taxes.

影子经济非正规竞争下的中小企业避税问题
本文利用印度中小型企业的数据,研究了在新兴市场环境下,面临非正规竞争的企业是否更有可能避税。我们使用了 9281 家回答世界银行企业调查的印度企业作为样本,发现了支持这一猜想的经验证据。我们发现,总部位于商业环境较好的邦/省的公司,以及在市场中具有较强竞争力的公司,不太可能因非正式竞争而避税。本文还显示,与不避税的公司相比,避税的公司更有可能投资创新,运营效率更高。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
2.30
自引率
7.10%
发文量
69
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