Author(s): Nayan Nandkishor Nirhali
The dual functions of taxation and financial advisory leadership in complying with regulations and helping develop strategies to manage financial risks have yet to be fully explored. The interactions between these two functions, with respect to developing compliance policies and determining strategic objectives, remain largely unexplored in the existing literature. There has been little research that examines the relationship between advisory leadership and the compliance and strategic outcomes of organisations, particularly in areas of high complexity. A survey-based quantitative study collected data from organizational leaders and finance professionals. Constructs for leadership in compliance and strategic decision-making were measured using validated Likert-scale items. Reliability (Cronbach’s Alpha, CR) and convergent validity (AVE) were assessed, and hypotheses were tested to examine leadership effects. Leadership in taxation and financial advisory impacts compliance positively via decreased administrative burden, increased regulatory conformity, and decreased risk associated with taxation. Furthermore, leadership affects strategy development through disciplined decision-making, the planning of taxes using efficiency, and strategic market development. Findings suggests that firms should embed advisory leaders in compliance and strategic functions to optimize financial strategies and strengthen governance. Policymakers can engage advisory leadership to promote voluntary compliance and build organizational trust, supported by principles of Agency and Trust Theory.