Power, justice, and trust: A moderated mediation analysis of tax compliance among Ethiopian business owners

Gobena, LB and Van Dijke, M ORCID: 0000-0001-9974-5050, 2016. Power, justice, and trust: A moderated mediation analysis of tax compliance among Ethiopian business owners. Journal of Economic Psychology, 52, pp. 24-37. ISSN 0167-4870

PubSub7057_VanDijke.pdf - Post-print

Download (205kB) | Preview


We explored the moderating roles of legitimate and coercive power held by the tax authority in the relationship between procedural justice, trust in the tax authority, and voluntary tax compliance. Drawing from fairness heuristic theory and the slippery slope framework of tax compliance, we predicted that procedural justice fosters voluntary tax compliance, particularly when legitimate power of the tax authority is low and when coercive power of the authority is high. Moreover, we predicted that these interactive effects are mediated by (cognition-based) trust. Finally, we predicted that coercive power of the tax authority is positively related with enforced tax compliance. The results of a field study among Ethiopian business owners supported most predictions. This research is among the first to integrate social-psychological and deterrence-related factors to understand tax compliance behavior in a developing country.

Item Type: Journal article
Alternative Title: Power, justice, and compliance [working title]
Publication Title: Journal of Economic Psychology
Creators: Gobena, L.B. and Van Dijke, M.
Publisher: Elsevier for the International Association for Research in Economic Psychology
Date: February 2016
Volume: 52
ISSN: 0167-4870
S0167487015001397Publisher Item Identifier
Divisions: Schools > Nottingham Business School
Depositing User: Jill Tomkinson
Date Added: 06 Jan 2017 10:12
Last Modified: 09 Jun 2017 14:10
URI: http://irep.ntu.ac.uk/id/eprint/29582

Actions (login required)

Edit View Edit View


Views per month over past year


Downloads per month over past year