The impact of tax compliance governance on the corporate financial performance during the COVID-19 crisis

This study examines how tax compliance governance affects the financial performance of listed companies in Morocco during the challenging COVID-19 crisis period. Building on the recognition that tax compliance extends well beyond traditional control mechanisms and is shaped by broader institutional and behavioral factors (Alm, 2019), alongside evidence that responsible corporate practices can strengthen relationships with key stakeholders (Freeman et al., 2010), we approached the tax compliance seal as a governance mechanism with the potential to generate tangible financial benefits. Using panel data from 2013 to 2021, we conducted a linear regression analysis, completed with robustness tests to evaluate model specification and ensure estimate reliability. The results show a significant positive relationship between the tax compliance seal and firms’ financial performance, although its effects vary by performance indicator and time period. These results suggest that effective tax compliance governance can strengthen financial resilience and market capitalization during times of economic uncertainty.