Muhammad M. Ma’aji

Type of the article: Research Article

Abstract
In Cambodia’s emerging economy, characterized by a large informal sector and tax compliance challenges, a successful tax amnesty program could strengthen financial markets by enhancing transparency and boosting investor confidence. The purpose of this study is to investigate how tax amnesty programs can improve investor confidence, regulatory trust, and access to finance, thereby promoting capital market participation. Using a quantitative approach, the study employs Partial Least Squares Structural Equation Modelling (PLS-SEM) to analyze data from 224 businesses. The findings reveal that participation in the tax amnesty program leads to significant improvements in financial transparency, investor confidence, regulatory trust, and access to finance. Moreover, increased investor confidence, desire to access finance, and regulatory trust were found to significantly influence companies’ intentions to list on the stock market. The study highlights the critical role of tax amnesty in preparing businesses for stock market listings and supporting capital market development, providing valuable insights for policymakers seeking to attract investment through regulatory reforms. The study contributes to the expanding literature on the importance of tax compliance and market development, offering insights into how tax forgiveness can act as a catalyst for economic growth and enhance capital market development.

Acknowledgment
This research was supported by the CamEd Business School research grant.