Deterrent Effect Research Articles

Reputational Costs as a Tax Avoidance Deterrent in Small to Medium Enterprises

Reputational concerns are considered a disincentive to tax avoidance. Prior literature examining tax avoidance in the context of large and listed firms attributes this relationship to the scrutiny to which large firms are subject. This begs the question if reputational concerns are a relevant tax avoidance deterrent in the setting of small to medium sized enterprises (SMEs) because SMEs have fewer stakeholders, lower disclosure requirements, and are subject to less media attention. Using survey data from Belgian SMEs, we find that SMEs with reputational concerns report an effective tax rate that is 8.57 percentage points higher than that of SMEs with low reputational concerns. We further examine which firm characteristics moderate the deterrent effect of reputational concerns on tax avoidance. We find that potential reputation damage is more important to the tax avoidance decision of firms with less financial freedom and firms with a higher need to maintain creditor relations. Finally, we document that reputational concerns act as a corporate tax avoidance deterrent against aggressive positions.

Implementation of Fulfillment of Rights Prisoners in State Prison Houses Class II B Bangli

The development of Correctional Inmates (WBP) at the Class II B Bangli State Detention Center (Rutan), aims to improve morals and character as well as providing a deterrent effect for WBP. The detention center as the technical implementer of correctional development for WBPs is tasked with developing WBPs, which of course involves the WBPs themselves, detention center officers and the community. Bangli Detention Center is one of the detention centers in Bali Province, which is located in Bangli Regency. The Bangli Detention Center, which is located at Banjar Bebalang Bangli, accommodates WBPs who not only receive cases from the Bangli District Court, but also receive deposits from WBPs from almost all districts/cities in Bali Province. This causes overcapacity in the Bangli Detention Center. With these conditions, of course there will be obstacles in the implementation of WBP training in the Bangli Detention Center.

The deterrent effect of environmental judicature on firms' pollution emissions: Evidence from a quasi-natural experiment in China

This paper investigates the deterrent effect of environmental judicature on firms' pollution emissions. Regarding the establishment of environmental courts (ECs) in China as a quasi-natural experiment, our staggered Difference-in-Differences (DID) estimation shows that strengthening environmental judicature has a negative, causal effect on firms' pollution emissions. The exogenous establishment of ECs decreases industrial firms' pollution emission intensity by approximately 7.8 %. Heterogeneity analysis shows that the negative effect of ECs on pollution emissions is particularly salient for firms in regions with weak environmental awareness, firms in industries with low competition, and firms with a high intensity of pollution emissions. Mechanism analysis indicates that the establishment of ECs enhances environmental justice and increases environmental violation costs, thereby having a deterrent effect on firms' pollution emissions. To comply with the more stringent environmental judicature, firms located in cities with ECs may temporarily cut their production, use more clean energy and buy more desulfurization equipment. In the long term, they may engage in more green and cooperative innovations, further substantiating the deterrent impact of stringent environmental judicature. Our findings can offer valuable insights for corporate green transformation and government pollution control.

Assessment of weather-driven travel behavior on a small-scale docked bike-sharing system usage

Bike-sharing systems play a crucial role in encouraging sustainable transportation, and understanding their usage characteristics is essential for enhancing their contribution to urban mobility. This research seeks to investigate how weather conditions impact the utilization of a small-scale docked bike-sharing system. The study employed Generalized Linear Mixed Effects (GLME) models to analyze interactive events, using categorized weather parameters to represent various weather conditions. Several models were developed to comprehensively understand distinct travel behaviors and identify significant weather variables affecting the frequency of bike trips for transportation and leisure purposes. The findings reveal that rain had a significant deterrent effect on leisure cycling, particularly on weekdays. Cold and hot weather conditions exhibited a more pronounced impact on weekday bike trips, while weekend bike trips appeared to be less influenced by weather variables. The fall season was found to be the least favorable for leisure trips, while winter was determined to be the most unfavorable for transportation trips. Furthermore, hot days in the summer season negatively impacted bike usage only on weekdays. These insights have important implications for the development of a more resilient bike-sharing system, particularly in small-scale contexts. They provide valuable recommendations for tailored strategies to mitigate the impact of adverse weather conditions, thereby fostering an increase in usage of bike-sharing systems for both leisure and transportation purposes.

Variance in odds ratios for estimating the deterrent effect of darkness on cycling: Variation due to the choice of case and control hours.

Comparing the counts of cyclists travelling at specific times of day is one approach to measuring the impact of ambient light level. Here we investigate one source of variance in the magnitude of change seen in previous research-the choice of case and control hour. This was done through an analysis of cyclist flows using data from multiple automated cyclist counters in five cities (Arlington, Bergen, Berlin, Birmingham and Leeds) to determine the odds ratios (OR) for each combination of case and control hour. The results tend to reveal odds ratios above 1.0 indicating that cycling can be deterred by darkness. The odds ratios varied with the choice of case and control hour. For two cities (Birmingham and Leeds), the impact was small, with little difference in ORs between any case and control hour combination. For three cities the variance in ORs was larger. To represent the impact of darkness on cycling flows across the range of case and control hours we suggest the Mantel-Haenszel pooled odds ratio is used, in which the odds ratio for each combination of case and control hour is weighted by the total number of cyclists in that combination. This suggested a statistically significant (p<0.001) deterrent effect of darkness in all five cities.

Law Enforcement Against the Practice of Advertising Fraud in Indonesia: A Review from the Aspect of Indonesian Criminal Law

Advertising is used as a common marketing strategy by various companies and individuals to promote their products or services to potential consumers. However, it is not uncommon for advertising to contain illegal and fraudulent activities that can cause harm to users through misdirection. In the act of advertising fraud, it is necessary to analyze the application of articles in the Criminal Code (KUHP) which regulates the concept of concursus in criminal law. The purpose of this study is to explain, identify and analyze the applicable legal framework, penalties imposed and law enforcement against advertising fraud in terms of criminal aspects. This research uses a normative juridical method by using a statutory approach (state approach), case approach (case approach), comparative approach (comparative approach), conceptual approach (conceptual approach). Based on the results of the research, advertising that deceives and harms consumers is an illegal act known as fraud and can be subject to the provisions in Article 378 of the Criminal Code. Article 379 of the Criminal Code stipulates that if as a result of the fraudulent act, a person suffers a loss, then the perpetrator of fraud may be subject to a more severe punishment. The provisions in the Criminal Code are used to protect the public from acts of fraud, and are expected to reduce the incentives of individuals, groups or other parties to commit fraud and provide a deterrent effect for the perpetrators.

Do geographic distance, cultural distance, and political hazards equally matter for Japanese firms' outbound mergers and acquisitions? A firm‐ and deal‐level empirical analysis

Several studies on cultural clusters classify Japan as independent, meaning that wherever Japanese firms go abroad, they must adapt to very different environments. This study examines how Japanese firms treat deterrent effects of geographic distance, cultural distance, and political hazards and whether the deterrent effects may vary with firm size, firm age, and ownership solution. Results using data on Japanese firms' outbound mergers and acquisitions (M&amp;A) from 2010 to 2019 reveal that (1) only the deterrent effect of geographic distance is absolute. (2) Larger firms with larger slack resources in their home country are less concerned about geographic distances and political hazards. (3) Older firms, exposed to typical practices and norms for a long time, are less adaptable to cultural distances. (4) The deterrent effect of geographic distance is weaker for complete control mode on the one hand, on the other hand, the moderating effect of complete control mode on political hazards hinges on firm size and age due to trade‐offs between integration benefits and resource/experience constraints.

Factors influencing and controlling vandalism by tourists and local indigenous communities at the Fandoghlou forest natural site

The presence of tourists may lead to environmental damage and vandalism, which can affect local community and tourist relationships, leading to dissatisfaction. The persistence of vandalism in natural environments can lead to detrimental effects; hence, identifying its triggering and inhibitory factors is crucial. The Fandoqhlou Forest region, as a tourist destination in Ardabil Province, has been subjected to various types of damage. The aim of this study is to assess the factors influencing and controlling damage resulting from tourism activities in the Fandoqhlou region. The study population included tourists and the local community who visited the forest area during the spring and summer months of 2023. Additionally, qualitative data analysis was conducted via Atlas Ti software. On the basis of the interview results, 479 initial codes were identified, from which 62 basic themes, 15 organizing themes, and 2 global themes were derived. The research findings identified the factors influencing the occurrence and control of vandalism in the study area. According to the results, environmental disregard, alongside tourists’ low cultural and educational awareness, was identified as a significant factor influencing vandalism. To mitigate this behavioral disorder, the important role of social media in disseminating relevant information and creating a platform for nature conservation in tourism activities and visits to natural sites can be emphasized. Management implications-Management programs should focus on enhancing environmental education and cultural awareness among both tourists and local communities need to mitigate vandalism and destructive behaviors at the natural forests and leverages social media to promote nature conservation.-Strengthening collaboration and foster between local communities, government agencies, and private sectors, need to be established to increase surveillance, enforce penalties and supporting environmental guardians are essential for effective monitoring and deterrence of destructive behaviors.-Implementing stricter law enforcement, along with establishing facilities and community empowerment programs, can strengthen forest protection, reduce vandalism, and promote a sustainable relationship between tourism and local communities.

Pertanggungjawaban Pidana Pelaku Pemberian Izin Ekspor Benih Lobster (Studi Putusan Pengadilan Negeri Jakarta Pusat Nomor 26/Pid.Sus-TPK/2021/PN Jkt.Pst)

This research examines the criminal liability of perpetrators granting lobster seed export permits, with a focus on the corruption case involving the former Minister of Maritime Affairs and Fisheries, Edhy Prabowo. The aim of the research is to analyze forms of abuse of authority and criminal liability that can be imposed on perpetrators. The research method used is normative juridical with a statutory and case approach. The results of the research show that Edhy Prabowo's actions were proven to violate Article 12 letter a of the Corruption Eradication Law jo. Article 55 paragraph (1) 1st jo. Article 65 paragraph (1) of the Criminal Code. The abuse of authority took the form of issuing permits to export lobster seeds unlawfully for personal and certain group interests. The criminal liability imposed includes imprisonment for 5 years, a fine of IDR 400 million subsidiary to 6 months in prison, revocation of political rights for 3 years after serving the principal sentence, and payment of compensation of IDR 9.6 billion and $77,000. There are aggravating reasons because corruption was carried out while serving as a public official and during the Covid-19 pandemic. This case shows the importance of strengthening the supervisory system in granting export permits as well as strict law enforcement to provide a deterrent effect. This research recommends increasing understanding of regulations for state officials and implementing appropriate punishments for perpetrators of corruption to ensure the sustainability of domestic fisheries and the Indonesian fisheries ecosystem.

Türkiye: Terrorist Incidents and Foreign Direct Investment

This study aims to evaluate whether there is a correlation and unidirectional or bidi rectional causality between terrorist incidents and foreign direct investment in Türkiye. Toda Yamamoto elucidates that there is no long-term relationship. RLS, on the other hand, reveals that there is a short-term relationship, and that produces a more fascinating result. While foreign direct investment does not increase terrorist incidents, terrorist incidents possess a positive effect on for eign direct investment. In this case, terrorist actions increase foreign direct investment to Türkiye in the short term. It also appears that terrorist incidents concentrated in big cities do not possess a deterrent effect on foreign direct investments concentrated in big cities. Keywords: Terrorist incidents, foreign direct investment, RLS, Toda Yamamoto causality, Türkiye.

Penerapan Diversi terhadap Anak Sebagai Pelaku Tindak Pidana Pencurian di Wilayah Hukum Kepolisian Resort Kota Jambi

Many children are now involved in criminal acts, including theft, so the solution needs to be done through diversion. The aim of the research is to understand and analyze the application of diversion to children as perpetrators of criminal acts in the jurisdiction of the Jambi City Resort Police and the obstacles in criminal law in the application of diversion to children as perpetrators of criminal acts in the jurisdiction of the Jambi City Resort Police. For this reason, this research uses a legal sociology approach with an activity design for 6 months whose scope or object in this research focuses on the application of diversion to children who are perpetrators of criminal acts of theft in the Jambi New City Sector Police. The main materials and tools used in this research are primary legal materials that come from the field and secondary legal materials that come from the library, then the place used in this research is the Jambi New City police sector so that the data collection technique is in the form of direct interviews with respondents. which produces an analysis technique, namely qualitative analysis. The results of this research are that diversion has not been applied to children as perpetrators of criminal acts by the Jambi City Resort Police, but there are still several obstacles so that diversion is often failed in achieving this and obstacles in implementing diversion against children as perpetrators of criminal acts of theft in the jurisdiction of the Sector Police. Kota Baru Jambi is where the victim does not want to carry out diversion because they still prioritize the deterrent effect on the perpetrator.

The deterrence effect of criminal sanctions against environmental crime in Finland: an application of the rational choice model of crime

Applying the rational choice model of crime, this study estimates the optimality of sanctions for environmental crimes, the social cost of these crimes and the expected gain to the offender with Finnish court data from 327 criminal cases in the period 2013–2018. Sensitivity analyses are conducted for the optimal fine, the expected gain from the crime and its social cost. The time-lag and uncertainties related to the restoration of the environmental harm are explicitly included in the model and the empirical analysis. The average fine was much lower than the optimal fine even when taking into account the constraint posed by the offenders’ wealth and disregarding the time-lag and uncertainties related to the restoration of the environmental harm. The use of prison sentences was also suboptimal. Even when the illegal gain was fully forfeited, the expected gain from the crime to the offender remained positive. Our results suggest a need to increase the cost of punishment by higher fines and reliable forfeiture of the illegal economic gain. They also point to the importance of systematically estimating both the environmental damage and the illegal gain from the crime as these were available respectively for only 24% (N = 79) and 3% (N = 11) of all cases.

Attraction of pitfall trap preservation fluids complicates the estimation of Collembola density

Collembola (springtail) communities consist of three eco-morphologically defined life forms: the euedaphics dwell inside the soil matrix, the epedaphics (including atmobiotics) live on the ground and in vegetation, and the hemiedaphics are intermediate. The vast majority of springtail community studies focus on the belowground (eu- and hemiedaphic) forms that are generally collected by taking and extracting soil cores. Few investigations have dealt with epedaphic Collembola that are usually captured with pitfall traps, and only very few studies so far covered all three life forms. When epedaphic and belowground species are sampled using both methods simultaneously, core data (true densities, [individuals m-2]) and pitfall data (activity abundances, [individuals trap-1 length of trapping period-1]) may be analyzed independently, but are incompatible in a common statistical framework. As a remedy, two competing numerical approaches to estimate true densities from activity abundances have been described in literature: the nested-cross array and the two-circle method. Attraction or deterrence effects of trap preservation fluids bias the density estimation of the nested-cross array, but not of the two-circle method. To determine whether this bias may be expected for Collembola, and thus which of the two methods should be used in future studies, we experimentally tested potential effects of preservation fluids on trap catch rates. Three preservation fluids (sodium benzoate, propylene glycol, formaldehyde) and a detergent (Tween80) significantly increased the number of captured springtails, thus demonstrating an attraction effect and the deficiency of the nested-cross array. In future studies of collembolan communities, we therefore suggest complementing the traditional focus on the eu- and hemiedaphic life forms by sampling epedaphic species using pitfalls, and subsequently remodelling the trapping data with the two-circle method.

Breaking Water Laws in the Murray‐Darling Basin: Understanding Water Compliance Challenges and Stakeholder Perceptions

AbstractClimate change will put pressure on irrigated agriculture, increasing water scarcity and possible non‐compliance with water regulations. This is especially true in areas such as the Murray‐Darling Basin (MDB), Australia, an area where water resources have been overallocated. Understanding the expected penalties and probability of detection and prosecution of water theft faced by irrigators is important for understanding the incentives for water compliance. We analyze state‐level compliance action data and undertake a detailed case study of estimating the real penalty value of water theft in New South Wales (NSW), the largest MDB state. This analysis is supplemented with qualitative comment on compliance issues from 63 MDB stakeholder interviews. Although findings from random audits suggest that only a small percentage of irrigators commit water theft offenses, the average probabilities of audit detection and prosecution for water theft in NSW between 2018/19 and 2020/21 were low, leading to an average real expected penalty value of stealing water well below existing market prices. Stakeholder interviews confirmed that the majority did not believe there were serious water theft or water compliance challenges—whereas recent secondary survey data suggests that the general public perceives water theft and compliance as a serious and ongoing challenge in the MDB and more needs to be done to address it. Three recommendations for data and policy reform are proposed, namely: (a) improving compliance data and reporting; (b) increasing the probability of detection and prosecution; and (c) increasing penalties, regulator visibility, and reforming legislation. Results illustrate that even countries with highly advanced water governance require data improvements, along with sufficient levels of compliance activities and penalties for effective deterrence and stakeholder confidence.

Do sanctions imposed on peers have a deterrence effect on related-party transactions of observing firms? Evidence from Chinese listed firms

How to effectively discipline related-party transactions has garnered widespread attention from both academia and practice. While extensive literature has examined the factors influencing related-party transactions, it has overlooked the impact of sanctions imposed on peers on the related-party transactions of other firms. Using panel data covering Chinese listed firms from 2002 to 2021, we find that sanctions imposed on peers have a deterrence effect on observing firms. Increasing the certainty or severity of sanctions significantly reduces related-party transactions in observing firms. Mechanism tests demonstrate that media coverage, industry competition, and social trust strengthen this deterrence effect. Further analysis suggests the deterrence effect of sanctions is primarily driven by indirect reputation effects. Additionally, we find that deterrence effect exists in both state-owned enterprises (SOEs) and non-SOEs. Our study sheds light on the efficacy of enforcement in the Chinese capital market and offers important implications for enhancing regulatory efficiency in emerging economies.

The Harm and Countermeasures of Transnational Commercial Bribery

In today's era of globalization, international exchanges are increasingly close, and transnational bribery cases are frequent. Therefore, combating commercial bribery by multinational corporations and strengthening the compliance system of transnational corporations are of great significance in promoting healthy economic development and social justice. At present, all countries have various legal provisions on corporate anti-bribery, but due to factors such as incomplete consistency of regulations in various economies, the governance effect is limited and it is challenging to fully credit the law's deterrence effect. Meanwhile, as the largest importer of foreign capital, commercial bribery in China is even more rampant, but due to the lack of domestic attention and the dispersion and ambiguity of the relevant laws and regulations, the bribe-takers are seldom sanctioned by the law.Through the analysis of the concept, causes and related cases of commercial bribery, as well as the comparative analysis of the relevant laws of Britain and the United States, this paper seeks to solve the problem of transnational bribery in China.

Shareholder Activism and the Deterrence Effect of Democratic Politician Shareholders

Shareholder Activism and the Deterrence Effect of Democratic Politician Shareholders

Comparative Analysis of the Crime of Adultery Based on the Old Criminal Code and the New Criminal Code to Realize Justice

Law number 1 of 2023 was prepared as an update of the old product, namely the Netherlands Heritage Fund. Various new paradigms of legal protection are part of the preparation of the draft of Law number 1 of 2023. However, at the same time, the protection of commercial sex workers (PSK) is still limited to efforts to provide a deterrent effect on those who allow prostitution to occur. In fact, the solution to the problem of prostitution should be solved systematically with lex specialis who raises issues involving prostitution. Meanwhile, the weakness of Law number 1 of 2023 is that it has not solved the core problem of brutal and inhumane social justice in prostitution. However, Law number 1 of 2023 has at least stopped the criminalization of prostitution. This research is prepared by normative juridical methods and reviews the law in depth based on the editorial and context of legal products of Law number 1 of 2023 on the basis of research to find.

Unveiling the drivers of banks' misconduct: Sanctions, signals, and the extent of unethical behaviour

This paper seeks to enhance our understanding of the drivers of misconduct in the banking sector. We propose several metrics of misconduct that allow for the identification of the occurrence, number and types of the breaches in the year in which they occur, rather than on the year in which the penalty is paid. Focusing on the US banking industry, our findings have important policy implications. We find that sanctions have a contemporaneous deterrent effect on misconduct. Large sanctions levied on large banks are also found to improve behaviour across the banking industry. The behaviour of larger banks acts as an informational signal for other banks, affecting their probability and intensity to misconduct.

Struggle for the Legacy: Sino-India Rivalry over Energy Sources in the Indian Ocean

Global economic power has shifted from the Atlantic waters to the Indo-Pacific waters. China and India are robust rising powers competing for ultimate regional and global politico-economic opportunities. Energy has become a common factor for both nations, leading to overlapping spheres of influence, strategic responses, and national interests. This article addresses the puzzle of the absence of military confrontations over the issues of energy sources in circumstances that carry enormous potential for conflict. This study aims to contribute to filling the research gap in interpreting the rivalry between China and India over energy resources. The analysis extends through an eclectic approach, incorporating assorted through assorted debates from different realist thought strands. It treats the theories of international relations as emphasising the structure of international relations. However, there is a complex interplay with the perceptions of those structures by the foreign policymakers of a country. The tentative hypothesis of this study has been that “energy rivalry between rising military powers in the Indian Ocean has increased tension, though not to the extent of violent confrontation”. They bargain for regional hegemony, but a deterrent effect prevents an armed conflict between two rising powers. The findings suggest that the tentative hypothesis is supported by substantial evidence regarding energy-based rivalry. Amidst aspiration to dominate, especially over security and energy affairs, neither China nor India would entrench towards a “Mutually Assured Destruction” (MAD). Besides acquiring defensive and offensive military capabilities, they are also concerned with diversifying its energy policies, including land routes for energy supply. The possibility of mutually assured destruction provides an incentive for deterrence, preventing violent confrontation over energy issue in the Indian Ocean.