Adoption of tax planning instruments in business organizations: A structural equation modelling approach

Legal tax planning instruments can be considered as rather complex innovations whose adoption requires knowledge and motivation. A set of interrelated hypotheses is derived from the adoption of innovations literature and is tested empirically. A LISREL causal modelling approach was used in testing the hypotheses. The estimated model showed excellent goodness of fit, and four of the five proposed hypotheses were supported. Theoretical and managerial implications are indicated.