Culture versus structure: A critical perspective on the role of culture in tax evasion

Document Type

Article

Publication Date

6-2019

Department

College of Business

Abstract

Culture is a somewhat nebulous term, particularly in the context of accounting scholarship. Historically, it has been offered as a factor to explain many economic phenomena, including tax evasion. Utilizing Hofstede's (1980, 2001) cultural dimensions and data from the World Bank from 2005–2010, this study takes an exploratory approach to develop a stepwise, forward selection regression model to better illuminate this phenomenon vis-à-vis culture and economic structure. The results suggest, at least within the context of tax evasion, that cultural indices may be redundant in the presence of other readily available socio-economic indicators. This brings the age-old debate of culture versus structure to the forefront of accounting scholarship and policymaking.

Publication Title

Accounting Historians Journal

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