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Compliance Decisions (compliance + decision)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	50%

Selected Abstracts

The determinants of voluntary investment decisions

MANAGERIAL AND DECISION ECONOMICS, Issue 8 2001
Wendy Chapple
This paper analyses investments by firms into areas of corporate social responsibility, focussing on the decision by firms whether or not to invest in compliance with voluntary environmental standards. Theoretical predictions of the compliance decision are tested using discrete time survival analysis on a large dataset of UK manufacturing firms. The rate of voluntary compliance is found to have increased since the introduction of the International Standards Organization (ISO) scheme. Further, voluntary compliance is found to be negatively associated with rates of return and industry share, and positively associated with capital intensity and industry export intensity. In contrast to theoretical predictions on corporate social responsibility, there is no evidence that investment in intangible assets, either at the firm or the industry level, is positively associated with the compliance decision. Copyright © 2001 John Wiley & Sons, Ltd. [source]

Principles in quality assurance.

QUALITY ASSURANCE JOURNAL, Issue 1 2003
Part 2.
Abstract In order to achieve and sustain effective compliance with the quality regulations, an understanding of the rationale for compliance must be developed throughout an organization. Developing such an organizational understanding is difficult to attain through training based solely on the text of the regulations or the company's Standard Operating Procedures (SOPs). These do have their place, but there is too much information, and the effects of training dissipate rapidly because personnel cannot effectively retain detailed information. In our organization, we undertook a process of simplification of the regulations, in an attempt to define the smallest number of basic quality principles that are embodied in Good Laboratory Practice (GLP) and associated regulations. The systematic application of these quality principles is a mechanism by which Quality Assurance (QA) can be clear and consistent in its monitoring and training activities. This process empowers all personnel to make correct compliance decisions without having to consult the detail of the regulations at every turn. The establishment and application of this concept at a bioanalytical contract research laboratory is described in this article. Copyright © 2003 John Wiley & Sons, Ltd. [source]

Effort and Aspirations in Tax Evasion: Experimental Evidence

APPLIED PSYCHOLOGY, Issue 3 2009
Erich Kirchler
Is the effort exerted to earn taxable income considered in compliance decisions? And if so, is hard-earned income or easy money more likely to be concealed from authorities? While economic theory postulates that prior costs should not affect present decisions, psychological research shows that prior investments of money, time, or effort do matter. Findings from previous studies on the impact of effort on abstract decision tasks suggest two contradictory predictions for the context of tax compliance decisions: Either taxable income earned by high effort is subjectively of higher value, and therefore more likely to be evaded, or investments of effort cause a shift of the reference point through the establishment of an aspiration level, resulting in honest declaration of income. Two experiments were conducted to test these predictions. In a business simulation, taxable income was obtained by different levels of effort and consequently had to be reported to authorities. Results show that tax evasion was more pronounced in low-effort conditions. This suggests that effort changes the reference point rather than the slope, and provides evidence that in tax compliance decisions aspiration levels serve as reference points. Implications for tax audits are discussed. L'effort déployé pour obtenir des revenus imposables est-il pris en compte dans les décisions qui en découlent? Et si c'est le cas, est-ce l'argent facile ou les revenus durement gagnés qui présentent une plus forte probabilité d'être soustraits au fisc? Alors que la théorie économique postule que le coût antérieur n'a pas de retombées sur les décisions présentes, les recherches de psychologie montrent que les investissements passés en argent, temps ou effort ont leur importance. Des travaux sur l'impact de l'effort sur des tâches de décision abstraite débouchent sur deux prédictions contradictoires en ce qui concerne les décisions relatives à l'impôt: ou le revenu imposable obtenu à la suite d'un effort substantiel est subjectivement fortement valorisé et a de fortes chances d'être camouflé, ou l'effort investi provoque un changement de référence à travers l'instauration d'un niveau d'aspiration, ce qui a pour conséquence une déclaration honnête des revenus. On a réalisé deux expériences pour mettre à l'épreuve ces prédictions. Dans une simulation commerciale, le revenu imposable a été obtenu suite à différents niveaux d'effort et devait être portéà la connaissance du fisc. Les résultats montrent que l'évasion fiscale était plus accentuée dans les conditions où l'effort était modeste. Il faut en conclure que l'effort entraîne une mutation du système de référence plutôt qu'une simple modification de niveau et que dans les décisions relatives à l'impôt les niveaux d'aspiration servent de point de référence. On réfléchit aux leçons à en tirer pour le contrôle fiscal. [source]