Compliance Costs Research Articles

From East to West: Lessons Learned from China and the UK's Approaches to Environmental Regulation of Multinational Enterprises

Environmental regulations play a crucial role in shaping the operations of multinational enterprises (MNEs), with different countries adopting diverse approaches to ensure sustainable development and reduce environmental degradation. This essay will provide an in-depth comparison of the environmental regulations in China and the UK, focusing on critical aspects of their regulatory frameworks, climate change and carbon emissions policies, corporate environmental reporting requirements, and enforcement and compliance systems. The central argument of this essay is that the differences in ecological regulations between China and the UK have significant implications for MNEs operating in these countries, affecting their compliance costs, operational risks, and opportunities for innovation. By comparing the regulatory landscapes in China and the UK, this essay provides valuable insights for policymakers, business leaders, and other stakeholders in understanding the complexities and implications of multinational operations in different regulatory environments.

Public Trust on Taxpayer Compliance in Indonesia

Taxpayer compliance is a condition where a taxpayer fulfills all of his tax obligations by making periodic and annual tax payments and reporting. The purpose of this research is to analyze the influence of public trust and mastery of taxpayer compliance technology with compliance costs as a moderator. The population of this research is taxpayers in Indonesia. This study uses SmartPLS4 software version 4.0.9.4 to process data. The sample in this research is 102 taxpayers. The results of this study are: first, the influence of public trust in the tax authorities has no significant effect on taxpayer compliance. Second, public trust in the government has no significant effect on taxpayer compliance. Third, mastery of technology has a significant effect on taxpayer compliance. The four effects of public trust in the tax authorities on taxpayer compliance have no significant effect on moderating compliance costs. The five influences of public trust in the government on taxpayer compliance have no significant effect on moderating compliance costs. The six effects of technology mastery on taxpayer compliance have no significant effect on moderating compliance costs.

Environmental regulation and corporate philanthropy: Evidence and mechanism from China

This study uses a sample of A-share listed companies from 2009 to 2018 to examine the impact of environmental regulation policy on corporate charitable donation behavior. The obtained empirical results indicate that increased environmental regulation intensity promotes corporate charitable donations—a result that holds true even after robustness and endogeneity tests. A follow-up mechanism test verified the rationality of three theoretical hypotheses related to hypocrisy, slack resource adjustment, and compliance costs, which formed the basis on which the main hypothesis in this paper was developed. This paper expands the field of research on the boundary between the internal motivation for and external function of corporate social responsibility.

Ilaprazole-amoxicillin dual therapy at high dose as a first-line treatment for helicobacter pylori infection in Hainan: a single-center, open-label, noninferiority, randomized controlled trial

ObjectivesThis study aimed to evaluate the efficacy, adverse events, patient compliance, and cost of dual therapy with Ilaprazole-amoxicillin (IA) at high dose versus Ilaprazole-amoxicillin-furazolidone-bismuth (IAFB) quadruple therapy for the Helicobacter pylori (H.pylori) infection among Chinese patients.Methods200 patients who had tested positive for H. pylori and undergoing upper gastrointestinal endoscopy after being diagnosed with chronic gastritis participated in this open-label randomized controlled clinical trial. Patients were randomized to Group A and Group B: the 14-day IA dual treatment group (101) and IAFB quadruple treatment group (99). The 13 C urea breath test was conducted to determine whether H. pylori had been eliminated 4–6 weeks after the treatment. Eradication rates, drug-related adverse events, patient compliance, and drug costs were compared between the two treatment groups.ResultsEradication rates in group A were 92.1% and 94.9%, depending on the intention-to-treat (ITT), per-protocol (PP), respectively, which was similar to group B (91.9% and 93.6%). There was no significant difference observed in adverse events between the two groups (P = 0.518). Interestingly, compliance was significantly higher in group A compared to the group B (P = 0.031). In addition, drug costs were significantly lower for group A in comparison to the group B.ConclusionsIA dual therapy was found to be equally effective, safer and less costly than IAFB quadruple therapy. Therefore, these therapies can be potentially considered as first-line regimens for empirical treatment.

“Being homeless can burn you out”: a qualitative study of individuals’ experience of administrative burden when accessing homeless services

ABSTRACT Despite significant efforts to address the homelessness in the United States, on any given night more than 500,000 individuals lack shelter/place to call home. This persistent and high rate of homelessness can be attributed to the shortage of affordable housing options, the eviction crisis, and unmet need for rental assistance. Administrative burdens tied to homeless services may also create barriers to housing for individuals experiencing homelessness, and to date have been under-explored in the literature. Our study explores administrative burden by examining 28 individuals’ experiences navigating homeless services in New Haven, Connecticut. Our analysis describes the learning, compliance and psychological costs individuals face. Our findings suggest that administrative burdens may lead to underutilization of services and prolonged homelessness. Further, they may promote new forms of inequities. We conclude with recommendations to reduce administrative burden and increase investments in homeless services and housing resources nationwide.

A THEORETICAL ANALYSIS OF THE NEW POLISH INCOME TAX SYSTEM

The research objective of this article is to present changes incorporated into the Polish income tax system and their potential influence on entrepreneurs’ behaviour. One of the most important features of the income taxation system for Polish entrepreneurs is that they can choose the rules of taxation. Under certain conditions, they can apply a progressive scale tax, a flat tax, or a revenue-based tax. The changes introduced in the year 2022 mean that for many entrepreneurs, the burden of taxation has increased. The theoretical and model analysis presented in this article revealed that for many of them, the revenue-based tax has become (or always has been) the optimal form of taxation. The analysis also indicates a serious problem with this form of taxation in the context of equity. This study may provide a basis for further research on the impact of tax perturbations on business activity, business structure, and costs of compliance.

Sector-Scale Proliferation of CSR Quality Label Programs via Mimicry: The Rotkäppchen Effect

Proliferation of CSR quality certification programs can be analysed within theories of mimicry. Some firms use third-party quality certificates to signal their CSR practices to consumers accurately. These firms and consumers benefit from few, simple, recognized, reliable labels. Other firms use competing or own-brand labels to signal deceptively, gaining competitive advantage without compliance costs. Unreliable labels act as mimics to dupe consumers. If consumers cannot determine which labels are misleading, they ignore them all. Within ecological theories of mimicry, this is known as aggressive reverse Brouwerian automimicry. CSR-label research has a different naming tradition, and this sector-scale effect could be called a rotkäppchen effect, analogous to program-scale groucho and firm-scale goldilocks effects. It is testable by analysing mimicry mechanisms or predicted patterns.

Does state tax reciprocity affect interstate commuting? Evidence from a natural experiment

This paper exploits the 2010 dissolution of the personal income tax reciprocity agreement between Minnesota and Wisconsin to estimate how state tax policies affect interstate commuting. This policy shock increased tax liability for some commuters and tax compliance costs for all commuters. Using a synthetic control approach designed for panel data, we compare the interstate commuting behavior of Wisconsinites and Minnesotans to unaffected intrastate commuters who live and work in the same state, intrastate commuters who live in other large metro areas, and several multi-state metro areas in other states where income tax reciprocity remained intact. Post-dissolution, we find robust evidence that the number of interstate commuters in Wisconsin border counties falls between 3 and 5%, with stronger declines found for younger and middle-income workers.

How can value added tax compliance be incentivized? An experimental examination of trust in government and tax compliance costs

PurposeThis study aims to investigate the relationship between trust in government, value added tax (VAT) compliance costs and VAT compliance in the Jordanian retail industry context.Design/methodology/approachThe study makes use of an online questionnaire survey to collect the required data, and the research model is eventually validated based on 189 responses gathered from the retail industry in Jordan. The obtained data was analyzed using partial least squares-structural equation modeling to examine the effects of trust in government and costs of VAT compliance on VAT compliance.FindingsThe results showed that VAT compliance costs have no significant influence on VAT compliance; while trust in government was found statistically positive significant with VAT compliance.Practical implicationsThis study’s results are expected to have implications for VAT authorities and policymakers in Arab countries, like Jordan in their policies formulation to enhance VAT compliance in retail industry. The study’s findings are alerting the policymakers for the positive noneconomic consequences of VAT compliance. It provides evidence that trust in government can increase VAT compliance.Social implicationsThe results of the research have a plentiful of social implications. Higher VAT compliance will enable higher levels of government spending on a many of social targets such as health, education, welfare programs and infrastructure.Originality/valueWhile the study builds on recent research examining how to incentivize VAT compliance, it simultaneously seeks to make three contributions. First, the study design aims to apply recent advances in behavioral sciences (impact of trust in government and VAT compliance costs) in a policy area that has not seen much use of such interventions in the Jordanian context (i.e. VAT compliance). Second, the study is government procedures pertinent in the sense that it aims to increase the effectiveness of existing government policies by complementing them with behavioral primes. Third, there is nearly no literature found applying this topic in a developing country such as Jordan. To the best of the author’s knowledge, this is the first study that examines the trust in government and VAT compliance costs on VAT compliance among Jordanian retail industry. Thus, this paper contributes to mitigating the literature gap by providing empirical evidence concerning the influence of trust in government and VAT compliance costs on the retail industry VAT compliance in the Jordanian context.

“They Asked for More, More, and More Paperwork”: Administrative Burdens When Undocumented Youth Claim In-State Resident Tuition Policy Benefits

Undocumented immigrants face learning, compliance, and psychological costs when confronting in-state resident tuition (ISRT) policy implementation. Building on administrative burdens scholarship and using qualitative data from 19 semi-structured interviews with undocumented youth immigrants, this article examines administrative burdens that may discourage and prevent students from accessing ISRT policy—a public benefit aimed at extending their educational opportunities. Findings demonstrate that undocumented youth navigate multifaceted contexts, including multiple rules at different organizational levels and interactions with admissions officers whose attitudes may facilitate or obstruct access. This study spotlights how some intended beneficiaries may be more affected by stigma and fear, depriving them of accessing public benefits. Furthermore, the study shows how bureaucratic procedures reinforce existing social inequalities by affecting those less well-positioned to address burdens.

CHALLENGES AND OPPORTUNITIES IN IMPLEMENTING MACHINE LEARNING FOR HEALTHCARE SUPPLY CHAIN OPTIMIZATION: A DATA-DRIVEN EXAMINATION

The adoption of Machine learning (ML) in the healthcare supply chain can help the supply chain to make better decisions on the inventory, making the supply chain operations efficient. But in the United States, the establishment of Machine learning (ML)is not easy because of the higher level of regulations, higher cost, data privacy issues and issues related to the integration of Machine learning (ML) with the existing systems. This article seeks to discuss the problems and possibilities of ML’s implementation in American healthcare supply chains while considering factors that facilitate or hinder the processes. In this study, national survey data of 200 professionals from the healthcare supply chain are used to discover the challenges related to the implementation of ML and the respondents’ perceptions of the advantages and future of ML. Comparing with the result of questionnaire survey, data analysis points out that Health Insurance Portability and Accountability Act (HIPAA) and Food and Drug Administration (FDA) are two important regulatory that create problems for health IT firms, including security requirements and high compliance cost. The research also reveals that geographic location influences ML priorities, as Machine learning (ML) is expected to enhance decision making for the Western US participants while cost containment applications of ML are valued by Northeast participants since healthcare costs are higher in this region. The study also shows that there are differences based on the role; procurement managers and supply chain analysts have varied opinions regarding the use of ML to improve cost efficiency and inventory management. The study shows that there is a need to develop the U.S.-specific approaches to ML adoption based on the regional, regulatory and role-specific circumstances. Some are increasing data accuracy and data security; others are implementing specific monetary rewards for patients; still, others are investing in staff development and infrastructure to support the use of ML. This research serves to add to the developing literature on ML in healthcare supply chains and gives a viewpoint unique to the United States while also delivering informative best practices for those organizations aiming to exploit ML’s possibilities effectively

Trade Facilitation for E-Commerce Export Clearance

Purpose – There is a paucity of literature dealing with exporters’ compliance issues in e-commerce exports. This study aims to fill this gap in the literature by exploring customs initiatives to facilitate the e-commerce exports of small and medium-sized enterprises (SMEs) in the changed compliance environment. The central question of this study was divided into five subquestions: first regarding the pros and cons of trade facilitation measures for Korean e-commerce export clearance; second and third questions about risk and compliance management for facilitation fourth about instruments, the changes in Korean SME compliance burden in e-commerce exports, and ways to improve trade facilitation for e-commerce exports. Design/methodology – This study adopts a qualitative approach using a case study method to understand the SME experience in Korean e-commerce export compliance procedures. A qualitative method was selected to answer research questions requiring an in-depth understanding of the regulatory procedures of customs administration and exporters’ compliance burden. Because this study addresses the changing compliance environment for which statistical data is insufficient, a quantitative method is considered inappropriate. Based on the approach, data were collected using multiple sources, including an extensive literature review, interviews, and field observations. Thematic pattern matching was applied to interpret the data. Findings – This study examined ways to support SMEs in the changed e-commerce export compliance environment. Facilitation measures for e-commerce exports have contributed to SME access to global markets, simplifying export clearance procedures, and saving exporters’ compliance costs. However, such instruments are limited in promoting SME compliance capabilities to cope with intensified competition and strengthened controls over foreign exporters in cross-border e-commerce. Therefore, this study highlights the importance of reshaping facilitation measures for e-commerce exports based on risk and compliance management theories to a system encouraging exporters’ voluntary compliance. Originality/value – This study’s academic significance derives from verifying the relationship between trade facilitation instruments and risk and compliance management procedures using an actual case in Korea. It is also of practical importance in navigating the directions for improving facilitation measures for e-commerce exports in a changed compliance environment.

The Effect of Cross-Listing, Institutional Ownership, External Monitoring, and Capital Stringency Regulation on Bank Performance: A Comparison of Developed and Developing Economies

A bank listed on a single exchange must endure complex rules and high compliance costs. Those rules and costs are magnified when a bank decides to cross-list on multiple exchanges especially when the exchanges are in countries with varying degrees of development. We study the impact of cross-listing, institutional ownership, external monitoring, and capital stringency regulation on banks’ performance in developed and developing economies. The effect of cross-listing from a more developed to a less developed country differs from the effect of cross-listing in the opposite direction. We find that cross-listing results in higher profit and lower asset quality in banks from developed economies and lower profit and higher asset quality in banks from developing economies due to higher regulations and compliance costs. Cross-listing is associated with higher capital in banks from developed countries and higher asset growth and loan growth in banks from developing economies, especially after the 2008 crisis period. Higher institutional ownership results in higher profits, better asset quality, and higher growth in all banks and in higher tier-1 capital in banks from developed countries. Higher external monitoring results in lower profit, better asset quality, and higher tier-1 capital but lower growth of assets and loans in banks from developing economies. Higher capital stringency regulation results in lower profits and higher tier-1 capital in developing countries and higher profits and better asset quality but lower growth in banks from developed countries.

What factors underlie burden tolerance in South Korea? Policy implementation domain, administrative efficiency, and bureaucratic personality

ABSTRACT Although administrative burden has been studied in relation to social policy, the experience of policy implementation as onerous is relevant to all policy domains, and citizens can experience burden in virtually any encounter with the state. Moreover, perceptions of administrative burden can be influenced by administrative values, such as efficiency. Burden tolerance captures an individual’s belief that the compliance, learning, and psychological costs associated with policy implementation are legitimate and functional, and consequently their willingness to impose these costs on policy targets. We hypothesise that burden tolerance is conditioned by both policy implementation domain and the efficiency of the implementing organisation. Additionally, we link bureaucratic personality, or the tendency to view rules as intrinsically desirable and legitimate, to burden tolerance. We test our hypotheses using a representative sample of South Korean citizens and a survey experiment. Our results suggest that, first and contrary to our expectations, policy domain does not affect burden tolerance. Second, knowledge about inefficiency negatively affects tolerance. Third, bureaucratic personality is positively related to tolerance. We also discuss the contextual aspects of administrative burden, and particularly how the East Asian and Korean policy context may have implications for the generalisability of the administrative burden concept.

IMPACT OF ONLINE CONSUMER PROTECTION LAWS ON E-COMMERCE IN GLOBAL MARKET

The need for online consumer protection laws has accompanied the growth of e-commerce in the global market. These laws aim to provide a safe and secure environment for online transactions. The impact of online consumer protection laws on e-commerce in the global market is significant. These laws have increased consumer confidence in online transactions, resulting in increased sales for e-commerce businesses. Secondly, they have created a level playing field for businesses, regardless of size, by setting minimum standards for online transactions. However, implementing these laws has posed challenges for businesses, including compliance costs and complexity, particularly for small businesses. The diversity of regulations in different countries has led to inconsistencies in consumer protection. Nonetheless, online consumer protection laws remain essential to ensure the growth and sustainability of the e-commerce industry. Online consumer protection laws have played a vital role in promoting a safe and secure environment for online transactions, leading to increased sales and consumer confidence in e-commerce. Key Words: E-Commerce, Consumer Protection Laws, Complexity, Online Consumer Protection, Consumer Protection in Global Market

IMPACT OF ONLINE CONSUMER PROTECTION LAWS ON E-COMMERCE IN GLOBAL MARKET

The need for online consumer protection laws has accompanied the growth of e-commerce in the global market. These laws aim to provide a safe and secure environment for online transactions. The impact of online consumer protection laws on e-commerce in the global market is significant. These laws have increased consumer confidence in online transactions, resulting in increased sales for e-commerce businesses. Secondly, they have created a level playing field for businesses, regardless of size, by setting minimum standards for online transactions. However, implementing these laws has posed challenges for businesses, including compliance costs and complexity, particularly for small businesses. The diversity of regulations in different countries has led to inconsistencies in consumer protection. Nonetheless, online consumer protection laws remain essential to ensure the growth and sustainability of the e-commerce industry. Online consumer protection laws have played a vital role in promoting a safe and secure environment for online transactions, leading to increased sales and consumer confidence in e-commerce. Key Words: E-Commerce, Consumer Protection Laws, Complexity, Online Consumer Protection, Consumer Protection in Global Market

Balancing Privacy and Competition: Evaluating the Competitive Effects of India’s Data Protection Bill

Abstract Data protection and competition law are perhaps two of the most enmeshed legal arenas in the contemporary data-driven world. This essay ingresses into this intersection, appraising the competitive implications of India’s Data Protection Bill, 2022 through key arenas of conflict such as jurisdictional tussles, data portability, the remedy of mandatory data sharing, and compliance costs. Although the intersection of privacy and competition law has been discussed in Indian scholarship, an analysis of the competitive implications of the Data Protection Bill has been absent. This is precisely the gap that this piece aims to fill, by appraising the host of new implications of the Digital Personal Data Protection Bill (DPDPB) on Indian competition and providing a framework to evaluate various competition concerns such as jurisdiction, compliance, and data sharing of any subsequent data protection bill in India. It does this by first analyzing the extent to which competitive concerns can be addressed in the Indian data protection system. With this premise, it secondly considers the question of jurisdictional primacy between the Competition Commission and the Data Protection Board, arguing for the primacy of the Competition Commission. Thirdly, it discusses the questions of data portability, mandatory data sharing and compliance costs in the DPDBP which could affect India’s competition, critically discussing the trade-offs and suggesting potential solutions. The goal of the piece is to critically examine the implications of the 2022 version of the bill to suggest ways forward for its future iterations in India.

Is stress among street‐level bureaucrats associated with experiences of administrative burden among clients? A multilevel study of the Danish unemployment sector

AbstractResearch on street‐level bureaucracy argues that factors such as stress and burnout affect the behaviors of street‐level bureaucrats toward clients. At the same time, the literature on administrative burdens argues that citizens face a series of costs when they experience policy implementation as onerous. We draw on both literatures to theorize ways in which street‐level bureaucrats' behavioral responses to stress states may influence client experiences of administrative burden. Using a multilevel dataset of unemployment counselors and unemployment benefit recipients from 53 departments of a Danish unemployment insurance fund, we find that stress states among counselors are positively associated with benefit recipients' experiences of both learning costs, compliance costs, and experiences of autonomy loss. We conclude by discussing limitations and practical implications. In particular, we call for research into how street‐level bureaucrat characteristics influence client experiences of administrative burden.

Strategic working capital management in response to a performance shock: evidence from the NOx Budget Trading Program

PurposeThis paper examines how manufacturing firms impacted by the nitrogen oxides (NOx) Budget Trading Program (NBP) strategically managed working capital to release funds for increased costs and mitigate the negative impact on firm performance.Design/methodology/approachThe study uses a panel data set including 11,302 manufacturing firm-year observations listed on the US exchanges during the period 2000–2008. The authors use Tobin's Q to proxy for firm performance, and cash holding, cash conversion cycle (CCC), days sales outstanding (DSO), days sales inventory (DSI) and days payable outstanding (DPO) for working capital management (WCM). The empirical analysis is conducted using both ordinary least squares (OLS) and propensity score matching (PSM) regressions.FindingsThe authors find that firms respond to the higher utility costs imposed by the NBP by decreasing CCC, DSO and DSI. This active WCM response partially mitigated the impact of increased compliance costs on performance for firms affected by the NBP. Results are robust in PSM regressions.Research limitations/implicationsClimate change is a global issue that has attracted increasing attention in recent years. This study shows how firms can adjust short-term financing strategies to address the costs of compliance with climate change regulation.Originality/valueThe paper contributes to the emerging literature on corporate finance and climate policy actions. The authors use the unique experimental setting of the NBP to examine the regulatory impact on corporate financial management. The authors demonstrate how firms used active WCM to mitigate the negative performance impact of regulatory compliance with the NBP, providing novel insight on the implication of compliance with climate change legislation.

CNN-Based Smart Parking System

Due to the increased number of cars, outdoor parking is one of the critical problems. Moreover, the management of the parking system is also considered a difficult task. Humans, on the other hand, were acclimated to efficiently parking their automobiles by providing them with the precise location of parking in advance of their arrival. As a result of human inefficiency, it was unsuccessful and ultimately increased the compliance cost. As a result of the development of the notion of the Internet of Things. A lot of systems were installed regarding smart parking systems that are decreasing the cost but also contain a huge impact on the reduction of emissions from cars. While it is possible to integrate Internet of Things (IoT) devices into automobiles, such an approach will necessitates the deployment of additional infrastructure, which will raise the cost, and also it is not feasible within current infrastructure configurations. Then there's the fact that CCTV technology is widely available and also small enough to fit into any parking area without being noticeable. In this paper, Convolution Neural Network (CNN) based smart parking system is designed and implemented. The CNN is used to detect vacant and occupied parking spaces through CCTV cameras and provide feedback to the passengers. Furthermore, the proposed approach is using CNR and PKLot datasets for ensuring the effectiveness of the model. This was developed to solve the issues of time, cost, and accuracy with the existing systems. As a result, the proposed model provides excellent results in terms of accuracy. Moreover, it is cost-effective and saves time.