Financial development and tax evasion: International evidence from OECD and non-OECD countries

IF 3.3 Q1 BUSINESS, FINANCE

Journal of International Accounting Auditing and Taxation Pub Date : 2024-10-04 DOI:10.1016/j.intaccaudtax.2024.100653

Amir Allam , Heba Abou-El-Sood , Mahmoud Elmarzouky , Ahmed Yamen

{"title":"Financial development and tax evasion: International evidence from OECD and non-OECD countries","authors":"Amir Allam , Heba Abou-El-Sood , Mahmoud Elmarzouky , Ahmed Yamen","doi":"10.1016/j.intaccaudtax.2024.100653","DOIUrl":null,"url":null,"abstract":"<div><div>This study investigates the nexus between financial development and tax evasion across 156 countries from 2000 to 2017. In contrast to previous research focusing solely on banks or financial markets’ development, we employ a more comprehensive financial development index introduced by the International Monetary Fund (IMF) in 2016. This index gauges the progress of financial institutions (FI) and financial markets (FM) in terms of depth, access, and efficiency. Our findings underscore a negative correlation between financial development and tax evasion. Enhanced depth, access, and efficiency in both FI and FM correspond to reduced levels of tax evasion. Nevertheless, disparities emerge between the Organization of Economic Cooperation and Development (OECD) and non-OECD countries. While non-OECD countries exhibit negative associations between FI and FM development and tax evasion, in OECD countries, the role of FI assumes greater significance in curtailing tax evasion. Notably, within OECD countries, the depth of FI and FM emerges as the sole influential factor. This contrasts starkly with non-OECD counterparts, where all dimensions − depth, access, and efficiency − negatively influence tax evasion. Our research has noteworthy implications for policymakers in both categories of countries.</div></div>","PeriodicalId":53221,"journal":{"name":"Journal of International Accounting Auditing and Taxation","volume":null,"pages":null},"PeriodicalIF":3.3000,"publicationDate":"2024-10-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of International Accounting Auditing and Taxation","FirstCategoryId":"1085","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1061951824000594","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}

引用次数: 0

Abstract

This study investigates the nexus between financial development and tax evasion across 156 countries from 2000 to 2017. In contrast to previous research focusing solely on banks or financial markets’ development, we employ a more comprehensive financial development index introduced by the International Monetary Fund (IMF) in 2016. This index gauges the progress of financial institutions (FI) and financial markets (FM) in terms of depth, access, and efficiency. Our findings underscore a negative correlation between financial development and tax evasion. Enhanced depth, access, and efficiency in both FI and FM correspond to reduced levels of tax evasion. Nevertheless, disparities emerge between the Organization of Economic Cooperation and Development (OECD) and non-OECD countries. While non-OECD countries exhibit negative associations between FI and FM development and tax evasion, in OECD countries, the role of FI assumes greater significance in curtailing tax evasion. Notably, within OECD countries, the depth of FI and FM emerges as the sole influential factor. This contrasts starkly with non-OECD counterparts, where all dimensions − depth, access, and efficiency − negatively influence tax evasion. Our research has noteworthy implications for policymakers in both categories of countries.

查看原文本刊更多论文

金融发展与逃税：经合组织国家和非经合组织国家的国际证据

本研究调查了 2000 年至 2017 年间 156 个国家的金融发展与逃税之间的关系。与以往仅关注银行或金融市场发展的研究不同，我们采用了国际货币基金组织（IMF）于 2016 年推出的更全面的金融发展指数。该指数衡量金融机构（FI）和金融市场（FM）在深度、准入和效率方面的进步。我们的研究结果表明，金融发展与逃税之间存在负相关关系。金融机构和金融市场的深度、准入和效率的提高与逃税水平的降低相对应。然而，经济合作与发展组织（OECD）国家与非 OECD 国家之间出现了差异。非经合组织国家的金融信息和金融管理发展与逃税之间呈负相关，而在经合组织国家，金融信息在遏制逃税方面的作用更为重要。值得注意的是，在经合组织国家中，财务信息和财务管理的深度成为唯一的影响因素。这与非经合组织国家形成了鲜明对比，在这些国家，所有维度--深度、准入和效率--都对逃税产生负面影响。我们的研究对这两类国家的政策制定者都有值得注意的意义。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Journal of International Accounting Auditing and Taxation BUSINESS, FINANCE-

CiteScore

4.50

自引率

3.80%

发文量

期刊介绍： The Journal of International Accounting, Auditing and Taxation publishes articles which deal with most areas of international accounting including auditing, taxation and management accounting. The journal''s goal is to bridge the gap between academic researchers and practitioners by publishing papers that are relevant to the development of the field of accounting. Submissions are expected to make a contribution to the accounting literature, including as appropriate the international accounting literature typically found in JIAAT and other primary US-based international accounting journals as well as in leading European accounting journals. Applied research findings, critiques of current accounting practices and the measurement of their effects on business decisions, general purpose solutions to problems through models, and essays on world affairs which affect accounting practice are all within the scope of the journal.