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Public governance quality and tax compliance behavior in developing countries: the mediating role of socioeconomic conditions.


Umar, Mohammed Abdullahi and Derashid, Chek and Ibrahim, Idawati and Bidin, Zainol (2019) Public governance quality and tax compliance behavior in developing countries: the mediating role of socioeconomic conditions. International Journal of Social Economics, 46 (3). pp. 338-351. ISSN 0306-8293

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Abstract

Purpose – The purpose of this paper is to explore the relationship between public governance quality and tax compliance behavior in developing countries in terms of what transpires between governments and citizens, leading the later to pay or to abstain from paying tax. The study argues that socioeconomic condition is a mediator in the relationship and explains how and why it is so. Design/methodology/approach – This study adopts the conceptual approach and connects the concepts through synthesis of literature and previous research findings.Findings – The study concludes that socioeconomic condition mediates the relationship between public governance quality and tax compliance behavior in developing countries. Socioeconomic conditions appear to be a broader, clearer and more practical concept for measurement purpose than public goods/spending as currently understood in the literature. Research limitations/implications – The study is a conceptual effort, and there may a be need to undertake further empirical investigations. Developing countries vary in their socioeconomic conditions, and there is a need to acknowledge country-specific circumstances. Practical implications – The implication of the finding includes the need for further research on the concept of socioeconomic condition, and how and why it influences tax compliance behavior in developing countries. Stakeholders and governments should monitor the impact of policies and actions on the socioeconomic condition of citizens to ensure they are satisfied. Their dissatisfaction leads to the boycott of the tax system which adversely affects economic development. Originality/value – This study makes an original contribution by exploring socioeconomic conditions as a mediator between public governance quality and tax compliance behavior in developing countries. It is a significant contribution that is capable of shifting the direction of tax compliance research in developing countries due to its practical realities

Item Type: Article
Uncontrolled Keywords: Mediating role, Developing countries, Public governance quality, Socioeconomic condition, Tax compliance
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
Divisions: Tunku Puteri Intan Safinaz School of Accountancy (TISSA)
Depositing User: Mrs. Norazmilah Yaakub
Date Deposited: 28 Aug 2019 06:12
Last Modified: 28 Aug 2019 06:12
URI: http://repo.uum.edu.my/id/eprint/26338

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