Impact of Taxation on Information Processing of Financial Services Business Location Decisions

Abstract

Question on the goodness of taxation system has been raised many times in the past by many researchers. In this study response research was carried out to find the effects of taxation on economy. Purpose of this research is to add a new dimension in the taxation literature by investigating the relationship between tax system variables and variable like location decision, information process and key decision makers. Relationship between these variables is tested by using data collected from financial service providers functioning especially in Sindh province. The main objective of the research was to know that "How do firms undertake information processing prior to making their decisions?" GLM (General Linear Modeling) was applied for checking the relationship between the variables, and research concluded that criteria for evaluating the extensive information process regarding selection of location must be improved and role of personnel involved in decision making on the basis of information must be significant. Moreover, this study provides evidence that some tax system variables are positively concerned with information processes, key decision makers, and location decision making. It also shed light on the fact that high or moderate tax burden do not necessarily impact decision making pertaining to business location.