Table A.2.
Descriptive statistics and group comparisons of changes in specific types of tax risk and risk sources
| HM firms (n = 9) |
Control group (n = 31) |
Comparisons | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Variables | Mean | SD | Median | Mean rank | Mean | SD | Median | Mean rank | Mean difference | Mean rank difference |
| Perceived changes in specific tax risks (strong decrease (−3)–strong increase (+3)) | ||||||||||
| Risk of penalties | −1.11+ | 1.45 | 0 | 9.00 | 1.03+++ | 1.22 | 1 | 23.84 | −2.14*** | −14.84*** |
| Risk of litigation | −0.89++ | 1.05 | −1 | 8.67 | 0.94+++ | 1.15 | 1 | 23.94 | −1.82*** | −15.27*** |
| Risk of penalties for individual decision makers | −0.78 | 1.30 | 0 | 10.83 | 0.74+++ | 1.13 | 1 | 23.31 | −1.52*** | −12.47*** |
| Personal risk | −0.56 | 1.59 | 0 | 14.00 | 0.55+++ | 1.09 | 0 | 22.39 | −1.10** | −8.39** |
| Reputational risk | −0.22 | 1.39 | 0 | 13.61 | 0.87+++ | 1.31 | 1 | 22.50 | −1.09** | −8.89** |
| Changes in tax risk sources (strong decrease (−3)–strong increase (+3)) | ||||||||||
|
Transactional risk (examples: acquisitions, mergers) |
−0.44 | 1.67 | 0 | 9.00 | 0.74+++ | 1.18 | 1 | 22.90 | −1.17** | −13.90*** |
|
Operational risk (examples: new business ventures, new operating models, new operating structure) |
−0.78 | 1.39 | −1 | 8.67 | 1.23+++ | 1.26 | 1 | 23.69 | −2.00*** | −15.03*** |
|
Compliance risk (examples: weak records and controls, legislative changes) |
−0.67 | 1.66 | −1 | 10.83 | 0.68++ | 1.45 | 1 | 22.86 | −1.34** | −12.02** |
|
Financial accounting risk (examples: changes in systems and policies) |
0.00 | 0.87 | 0 | 14.00 | 0.32++ | 1.19 | 0 | 21.57 | −0.32 | −7.57 |
|
Management risk (examples: changes in personnel, new/inexperienced resources) |
−0.11 | 0.33 | 0 | 13.61 | 0.35++ | 0.92 | 0 | 22.19 | −0.47 | −8.58* |
|
Reputational risk (example: revenue authority investigation) |
0.00 | 1.23 | 0 | 9.00 | 0.55++ | 1.31 | 0 | 21.77 | −0.55 | −12.77 |
|
Portfolio risk (example: combination of any of the risks) |
−0.11 | 0.93 | 0 | 8.67 | 0.58++ | 1.26 | 1 | 22.45 | −0.69 | −13.79** |
Significance levels are based on conventional independent t‑Tests (for mean differences) and on exact U‑tests (for mean rank differences). ***, ** and * indicate two-tailed statistical significance at the 1, 5 and 10% level, respectively. +, ++, and +++ denote means of items/scales measuring perceived change which are significantly different from zero at the 1, 5, and 10% level, respectively.