nep-reg New Economics Papers
on Regulation
Issue of 2005‒08‒03
two papers chosen by
Christian Calmes
Université du Québec en Outaouais, Canada

  1. Keeping It Off The Books: An Empirical Investigation Into The Characteristics Of Firms That Engage In Tax Non-Compliance By Lindsay M. Tedds
  2. Pots and Kettles: Governance Practices of the Ontario Securities Commission By Joel Fried

  1. By: Lindsay M. Tedds
    Abstract: We investigate firm tax noncompliance using a survey of firms from around the world. Overall, we find that small firms are less and large firms are more compliant. Foreign owned firms, exporters and firms that have audited finance statements are also more compliant, as found by others, but, quite surprisingly, government ownership is insignificant. Not surprisingly, organized crime, high taxes, and government corruption all result in lower compliance. Finally, we find that firms around the world engage in tax noncompliance but, holding all else constant, compliance in highest in OECD countries and the lowest in Latin American, African & Middle Eastern countries.
    Keywords: Underground Economy, Tax Noncompliance, Firm Characteristics, Interval Regression
    JEL: C24 D21 O17
    Date: 2005–07
  2. By: Joel Fried (University of Western Ontario)
    Abstract: An analysis of the governance policies of the Ontario Securities Commission (OSC) is undertaken in light of that institution's drive to improve governance practices in the private sector. It turns out that the Commission itself does not practice many of the governance practices required and/or advocated for the corporate sector. Furthermore it is argued that governance policies necessary to resolve the principal - agent problem for the corporate sector are necessary to resolve that problem for a public sector regulator, but they are not sufficient. This is the result of the greater difficulty in monitoring the regulator because the objectives of the principals/electorate are more difficult to measure than profits, and those objectives are only loosely correlated with cash flows. The insistence on publicly available cost-benefit analyses for new and existing OSC initiatives is one method to improve monitoring.
    Date: 2005

This nep-reg issue is ©2005 by Christian Calmes. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.