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SME tax avoidance in the presence of informal competition from shadow economy.
- Source :
- Journal of Corporate Accounting & Finance (Wiley); Apr2024, Vol. 35 Issue 2, p265-280, 16p
- Publication Year :
- 2024
-
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. [ABSTRACT FROM AUTHOR]
- Subjects :
- INFORMAL sector
SMALL business
EMERGING markets
TAXATION
MARKET positioning
Subjects
Details
- Language :
- English
- ISSN :
- 10448136
- Volume :
- 35
- Issue :
- 2
- Database :
- Complementary Index
- Journal :
- Journal of Corporate Accounting & Finance (Wiley)
- Publication Type :
- Academic Journal
- Accession number :
- 176497345
- Full Text :
- https://doi.org/10.1002/jcaf.22681