Table 4.
Survey items and scales used in the analyses
| Mean (SD) | Cronbach Alpha/Item-scale correlation | |
|---|---|---|
| Items and scales assessing tax risk and tax risk management at the time of participation | ||
|
CurrTaxRisk (“How would you describe your company’s tax risk profile?”) (very low tax risk (1)–very high tax risk (7)) |
2.93 (1.23) |
– |
|
CurrTRM (3-item scale) (not at all (1)–to a great extent (7)) |
4.53 (1.52) |
0.86 |
| “Is the identification and management of tax risk in your company part of the overall risk management system?” |
4.73 (1.84) |
0.70 |
| “Is your tax risk management system well documented?” |
4.45 (1.68) |
0.77 |
| “Is your tax risk management system operationalized in daily business?” |
4.40 (1.65) |
0.74 |
|
Items and scales assessing changea (strong decrease (−3)–no change (0)–strong increase (+3)) | ||
| ∆TaxRisk (“Tax risk for your company”) |
0.75 (1.58) |
– |
| ∆Certainty (“Tax certainty for your company”) |
0.20 (1.90) |
– |
| ∆Costs (“Compliance costs of your company”) |
1.05 (1.34) |
– |
| ∆TRM (3-item scale) |
1.15 (0.81) |
0.82 |
| “Quality of the tax risk management system” |
1.13 (0.85) |
0.82 |
| “Degree to which the tax risk management system is formalized (i.e., well documented)” |
1.40 (1.06) |
0.66 |
| “Degree to which tax risk is included in the general risk management system” |
0.93 (0.89) |
0.59 |
aHM firms reported change since entering the HM program, the control group for the last 10 (n = 23) or 5 years (n = 8).