Reduced recruitment success as a deterrent to tax aggressiveness: evidence from tax and nontax students’ job pursuit intentions

Kenny Dekoster, Isabelle Verleyen and Annelies Roggeman

Accounting Research Journal, 2025, vol. 38, issue 5-6, 630-645

Abstract: PurposeThis study aims to investigate whether aggressive corporate tax avoidance and tax evasion have an impact on recruitment success through job seekers’ job pursuit intentions, comparing the intentions of non-tax-specialized with tax-specialized job seekers.Design/methodology/approachAn online experiment was conducted with 439 final-year students from five Belgian universities. Participants evaluated a hypothetical company’s tax strategy and assessed their job pursuit intentions using a validated scale.FindingsTax evasion significantly decreases job pursuit intentions, emphasizing legality as a key reference point for job seekers. Although tax avoidance is generally not as detrimental as tax evasion, it can still pose risks to recruitment success, particularly through a reduced propensity to recommend the organization to others. No significant differences emerged between tax and nontax students.Originality/valueThis study extends prior studies on the reputational costs of corporate tax aggressiveness, which mainly explored consumer and investor reactions, by examining its effects on job seekers.

Keywords: Corporate tax strategy; Job pursuit intentions; Recruitment; Tax education; Scenario-based experiment (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:arjpps:arj-11-2024-0395

DOI: 10.1108/ARJ-11-2024-0395

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