Public Governance Quality And Tax Compliance Behavior In Ghana: The Moderating Role Of Financial Condition And Risk Preference.

Abstract

The study examines the PGQU-public governance and TCOM-tax compliance behavior in Ghana and examines the moderating effects of FCO-financial condition and RPE-risk preference. In particular, the study aimed to analyze the association between public governance quality and tax compliance behavior in Ghana, investigate the moderating effect of financial condition on the association between public governance quality and tax compliance behavior in Ghana, and investigate the moderating effect of risk preference on the association between public. The study adopted quantitative method, and it employed the descriptive and explanatory research design. Structured questionnaires were administered to solicit primary data for the study. The target population for this study encompassed tax payers which includes business entities and individuals within the various sector of economy in selected regional capital in Ghana, which is estimated over 1,200. A sampling size of 291 with response rate of 210 representing over 71% was generated for the study using the convenience and purposive sampling technique. The primary data from the respondents were analyzed using SPSS version 23 and AMOS. The study revealed positive association on public governance quality and tax compliance behavior. It also found that, financial condition moderates statistically positive significant on the relationship between PGQU and TCOM in Ghana, followed by negative insignificant moderating role of risk preference on the relationship between PGQU and TCOM. The conclusion drawn is that, there is association between tax compliance behavior and public governance quality but statistical insignificant. However, financial condition of individual strengthens significantly positively to the association between public governance quality and tax compliance behavior, while risk preference reported weak insignificant effect on the main two variables.