Tax risk assessment, financial constraints and tax compliance: A bibliometric analysis

Abstract

Taxation is a fundamental source of revenue for governments. However, globally tax revenue performance has continuously been poor. This has been attributed largely to poor tax compliance behaviour. Theoretical arguments from Pecking Order Theory (POT) and the Extended Parallel Process Model (EPPM) suggest that financial constraints and tax risk assessment could explain the dynamics of tax compliance. Motivated by these grounds, this paper seeks to explore the extent to which prior research efforts have been directed toward tax risk assessment, financial constraints and tax compliance. This paper employs bibliometric analytical procedures to interrogate the existing empirical literature from 1981 to 2022. This paper uses the Scopus database to conduct the bibliometric analysis using “bibliometrix” package. It was evident through the analyses that emerging studies have explored these variables: tax risk assessment, financial constraints and tax compliance. However, joint search criteria were introduced; it was found that the empirical literature has largely not considered the interconnectedness of these variables. When two variables mapping search criteria were used, it was observed that apart from financial constraints and tax compliance, these variables have virtually not been investigated. Given these empirical gaps coupled with the theoretical justification of the connectedness of these variables, it is recommended that future studies should extend the literature to contribute to filling the gap. Evidence of such analyses could also shape tax policy and practice and therefore government and tax authorities should sponsor studies in this area.