Tax evasion in the media: a comparison of Southern vs Central and Northern Italy
| Pages | 36-49 |
| DOI | https://doi.org/10.1108/JFC-12-2017-0124 |
| Date | 07 January 2019 |
| Published date | 07 January 2019 |
| Author | Andrea Mangani |
| Subject Matter | Accounting & Finance,Financial risk/company failure,Financial crime |
Tax evasion in the media:
a comparison of Southern vs
Central and Northern Italy
Andrea Mangani
Department of Political Science, University of Pisa, Pisa, Italy
Abstract
Purpose –The representation of economic and financial crimes in the mass mediacan have a significant
impact on readers’andcitizens’perceptions of illegality and on a firm’s propensity to invest in different areas
of the country in question. This paper aims to study the possible geographical media bias regarding tax
evasion in Italy.
Design/methodology/approach –The empirical analysis considers 618 articles on tax evasion
published between 2012 and 2016 in two top Italian newspapers, La Repubblica (based in Rome) and Il
Corrieredella Sera (based in Milan).
Findings –Excluding Insular Italy (Sicily and Sardinia), the articles on tax evasion in Southern Italy are
systematically shorter.A further analysis shows that La Repubblica is largely responsiblefor this bias. This
result holdsafter controlling for other events (bank robberies)and for the identity of journalists.
Originality/value –Previous studies consideredthe possible media bias regarding particularly dramatic
criminal events, for example, terrorism acts or murders. This paper considersa less dramatic though more
pervasive crime. In addition,an assessment of media attitude towardstax evasion is more complex, because
the news reportsboth the crime and the successful actions that combat it.
Keywords Newspapers, Regional disparities, Tax evasion, Media bias
Paper type Research paper
1. Introduction
Tax evasion is a serious issue in democratic societies; it reduces the financial resources
available for public expenditure and contributes to the public deficit (and, therefore, to
public debt). Tax evasion also hassecondary effects: unfair competition between those who
pay taxes and tax evaders, discrimination between employees and the self-employed and
hindrance to public policies designed to redistribute income and wealth. The quality of
public services, citizens’income and their consumption are thus inversely correlated with
the extent of tax evasion. Economists, public institutionsand mass media constantly debate
these issues, because tax evasion is widespread in all countries. Unfortunately, the
magnitude of tax evasion is not easy to assess given that it is part of the black economy.
Thus, national and international institutions have reported that tax evasion estimates are
complex (OECD, 2017).
At the same time, the mass mediaregularly report on tax evasion. News and stories may
have a strong impact on citizens’perception of tax evasion. In particular, readers and
viewers may believe that tax evasion affects different regions of the same country to a
different extent. This perception may stem from prejudices regarding the propensity to
commit crime in specific areas, as well as from the way in which the mass media cover
criminal events in different regions.The perception of citizens regarding tax evasion within
a country can also influence a firm’s incentive to invest in a particular area. While some
JFC
26,1
36
Journalof Financial Crime
Vol.26 No. 1, 2019
pp. 36-49
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-12-2017-0124
The current issue and full text archive of this journal is available on Emerald Insight at:
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