tax avoidance

Taxation is a strategic, fundamental and dynamic topic that plays a fundamental and pivotal role in the realization of the national development plans of any country. hence The purpose of the present study was to investigate the impact of business strategy on tax avoidance with emphasis on the effect of political connections of listed firms in Tehran stock exchange. Accordingly, this study sought to achieve this goal by analyzing the data of 107 sample firms during the period of 10 years from 2014 to 2023. In order to analyze the data, multiple regression and panel data and EViews and STATA softwares were used. The analysis of the results showed that prospectors strategy has a significantly positive effect on tax avoidance. On the other hand, defenders strategy has a significantly negative effect on tax avoidance. Also, political connections have a significantly negative effect on the relationship between prospectors strategy and tax avoidance. Finally, political connections have a significantly positive effect on the relationship between defenders strategy and tax avoidance

In modern economies, taxation is the most important source of government revenue. On the other hand, since taxes reduce the wealth and value of companies, companies are always looking for ways to avoid paying taxes. Among these ways, one can refer to related party transactions and transfer pricing. In this context, state-owned companies can act as an effective corporate governance mechanism against management actions such as related party transactions with the intention of tax avoidance due to their role in protecting government interests. Given the above, the aim of this research is to examine the relationship between related party transactions and tax avoidance considering the moderating effect of state ownership. This research is applied in terms of purpose and descriptive-correlational in terms of method. The researcher found that related party transactions and tax avoidance have a significant positive relationship using a sample of 283 accepted companies on the Tehran Stock Exchange during 1389-1400 and multiple linear regression, while there is no significant relationship using the cash effective tax rate index. Furthermore, the results showed that state ownership has a significant negative impact on the relationship between related party transactions and tax avoidance. However, this study's results indicate that regulatory framework should be reconsidered for considering related party transactions to protect minority shareholders' interests in non-state-owned companies.

Companies with the most efficient value chain thus address success factors and engage less in tax avoidance. This study investigated the effect of value chain efficiency on tax avoidance, shareholder wealth, and cash flows, and then delineated the impact of tax avoidance on shareholder wealth. Moreover, the impact of two key characteristics, company size and debt ratio, on tax avoidance was assessed. The statistical population included the companies listed on the Tehran Stock Exchange, Iran, of which 142 cases were selected as the study samples by screening, and investigated within an 11-year period (2011-2021). The results demonstrated that value chain efficiency has a negative effect on tax avoidance, but a positive impact on shareholder wealth and cash flows. On the other hand, tax avoidance does not influence shareholder wealth, but increases cash flows. Besides, company size has a positive effect on tax avoidance, whereas debt ratio reduces it. According to the results, the synergy of value-creating activities improves operational results by increasing cash flows and also improving the market value of the company. On the other hand, companies that have a more efficient and favorable value chain are less involved in tax avoidance. From a practical point of view, based on the results, tax avoidance cannot be considered a policy aimed at misleading the real value of the company's shares, and managers, investors, and analysts can make better decisions by relying on the operational and non-operational capabilities of the value chain that actually lead to wealth creation.

The purpose of this research was to investigate the effective internal and external factors in the tax avoidance process of companies listed in the Tehran Stock Exchange and to provide a suitable model in this field. To present the model, interpretive structural modeling method has been used. The results of interpretative structural modeling show that internal organizational factors in the process of tax avoidance include ownership structure and corporate governance, company size, financial leverage and internal information quality. Also, effective external organizational factors in this field include competition in the product market, financial constraints, corporate social responsibility, customer focus and social trust. After examining these factors, we presented the research model according to them. In addition, the results of the Meek Mak matrix analysis showed us that the ten factors related to the explanation of the influencing pattern on the tax avoidance process in listed companies are divided into three categories of penetrating, dependent and linked factors in terms of permeability and dependence. Factors of customer focus and social trust are dependent factors because they have low penetration power and high dependence power. The factors of corporate social responsibility, ownership structure, corporate governance and quality of internal information are influential factors or main drivers because they have high influence power and low dependence power. Also, the factors of financial leverage, company size, competition in the product market and financial limitations are the strategic variables of the research and are classified in the category of linked variables.

Fraudulent reporting is a critical challenge in financial management, posing a serious threat to financial integrity and investor trust. Companies often engage in financial manipulation practices such as tax avoidance, tax evasion, and tax corruption, which can significantly increase the prevalence of fraudulent reporting, as these practices frequently involve intentionally misleading information to conceal financial issues. Among these challenges, the role of corporate social responsibility (CSR) emerges as a key factor. This research examines whether a commitment to CSR can serve as a deterrent in the relationship between these harmful tax practices and fraudulent reporting. To address this, the study uses data from 146 publicly traded companies(1460 years-firm) from 2013 to 2022 and employs regression, logistic models, and the mediation approach of Baron and Kenny (1983) to analyze the complex patterns between corporate tax practices, fraudulent reporting, and CSR disclosure. The findings indicate that the use of tax avoidance, tax evasion, and tax corruption practices leads to increased fraudulent reporting. Furthermore, CSR plays a mediating role and mitigates the increase in fraudulent reporting caused by tax avoidance, tax evasion, and tax corruption. This study highlights the significant mediating role of CSR in the relationship between tax activities and fraudulent reports, emphasizing the importance of integrating CSR practices into corporate governance to address tax evasion, corruption, and fraudulent reporting.

This study examines the effect of tax avoidance, financial leverage, and executive bonus on company value with the moderating role of earnings quality. A sample of 103 companies listed on the Tehran Stock Exchange was selected for this study. In this study, the effect of tax avoidance, financial leverage, and executive bonus on company value with the moderating role of earnings quality was investigated for the period 1397 to 1402, with a total of 618 observations available for the study. The statistical method used in this study is the multivariate regression method using panel data. The results of the research hypotheses indicate that there is a significant relationship between tax avoidance, financial leverage, and executive bonus with company value, and that earnings quality has a significant effect on the relationship between tax avoidance, financial leverage, and executive bonus with company value. Studying the Effect of Tax Avoidance, Financial Leverage, and Executive Bonus on Company Value with the Moderating Role of Earnings Quality

This study investigated the role of audit committee knowledge in tax avoidance with regard to corporate strategies among Tehran Stock Exchange companies. In this applied, descriptive-correlational research, post-event method is used. Research variables were also investigated using financial statement information of companies admitted to the Tehran Stock Exchange. The time period of the study includes the years 1392 to 1401 and the selected sample was selected using the accessible society method, consisting of 190 companies admitted to the Tehran Stock Exchange. Multiple regression was used in R software to classify the data collected from Excel software and to test research hypotheses. Based on the statistical analysis, the results at the five percent error level showed that there is a significant relationship between the financial knowledge of the audit committee and tax avoidance. The company's strategies have a significant effect on the relationship between the financial knowledge of the audit committee and tax avoidance.

Due to emotional factors, optimism, limited rationality, time limitation, judgment and social factors, management shows various behavioral biases that can have long-term negative effects on investors and the company. From the point of view of shareholders, tax avoidance is not only justifiable but also desirable. On the other hand, in order to achieve the economic development of the country, the government must be able to finance its current expenses from tax revenues. Meanwhile, previous research shows that due to reasons such as tax avoidance and tax evasion, tax revenues constitute a small percentage of the country's income sources. This makes studies related to tax avoidance and the factors affecting it more important. Based on this, the main purpose of this study is to Investigating the effect of optimism, myopia and overconfidence behavioral biases on tax avoidance.The statistical population of the research includes the companies listed in Tehran Stock Exchange. Accordingly, by applying some conditions and constraints, 95 companies (950 observations) were selected from the statistical population over the period 2013-2022 and the relationships between the research variables were analyzed using static panel data and logistic regression method. The results of the hypothesis test show that overconfidence and management myopia variables have a direct and significant relationship with the dependent variable of tax avoidance while optimism variable has the opposite effect on this variable.

The present study analyzed the role of corporate governance mechanisms on the relationship between social responsibility information disclosure and corporate tax avoidance. For this purpose; The information of 132 companies admitted to the Tehran Stock Exchange for a five-year period (from the beginning of 2017 to the end of 2022), was extracted, the research variables were calculated, and the necessary statistical tests were performed. The current research method is descriptive-correlational and its design is experimental and using the post-event approach, in order to test the research hypotheses, multivariable linear regression was used, which was investigated and tested using statistical and econometric methods. Hypotheses have been discussed. Research findings; It indicates that the disclosure of social responsibility information has a negative and significant effect on tax avoidance, the independence of the board of directors has a positive and significant effect on the relationship between the disclosure of social responsibility information and tax avoidance, and management ownership has no effect on the relationship between the disclosure of social responsibility information and tax avoidance.

Tax avoidance is legal behavior; That is, economic agents try to reduce their tax debt by using loopholes in the tax law and revision in their economic decisions. Paying taxes causes the cash flow of the company to go out. For this reason, investing in tax plans has always been in the focus of company managers. The purpose of this research is to investigate the effect of institutional ownership, financial leverage and liquidity on tax avoidance in companies listed on the Tehran Stock Exchange. For this purpose, a sample of 97 companies admitted to the Tehran Stock Exchange between 2017-2023 was selected. The information was collected by using the data available in Rahvard Navin software and reviewing the reports and financial statements of the companies admitted to the Tehran Stock Exchange by referring to the official website of the Tehran Stock Exchange; And tests have been done using panel data econometric software. The results show: institutional ownership and liquidity have a negative and significant effect on tax avoidance. But financial leverage has a significant positive effect on tax avoidance.

The purpose of this research is to investigate the effect of institutional ownership, financial leverage and liquidity on tax avoidance with the moderating role of company size in companies listed on the Tehran Stock Exchange. For this purpose, a sample of 97 companies accepted in the Tehran Stock Exchange was selected between 2017-2023. The information was collected by using the data available in Rahvard Navin software and reviewing the reports and financial statements of the companies accepted in the Tehran Stock Exchange by referring to the official website of the Tehran Stock Exchange; And tests have been done using panel data econometric software. The results show: company size has a significant negative effect on the relationship between institutional ownership and tax avoidance. Also, company size has a significant negative effect on the relationship between liquidity and tax avoidance. The relationship between company size in the relationship between financial leverage and tax avoidance is significant and positive.

In financial reports, taxes indicate the government's share of the profits of companies. Tax avoidance means tax savings resulting from the reduction of public tax payments, the legality of which is sometimes doubted and is considered as the number of transactions to minimize tax liabilities. Companies have responsibilities towards stakeholders, society, and others, and the realization of this importance sometimes depends on compliance with other responsibilities, such as social responsibility and tax avoidance, which are criteria that can represent the accountability goals of managers in companies. The purpose of this study is to investigate the role of corporate social responsibility disclosure in relation between investment opportunities and tax avoidance .The study area is the accepted companies in Tehran Stock Exchange. The time domain of the study has been considered from 2016 to 2023. Based on the sample extraction conditions, 140 companies were analyzed. The purpose of this study is descriptive and the type of research is descriptive. EViews software was used for statistical analysis of data. In summary, the results of the statistical studies of these models showed that there is a significant relationship between investment opportunities and tax incentives. There is a positive and significant relationship between corporate social responsibility disclosure and tax avoidance. Disclosure of corporate social responsibility is effective in the relationship between investment opportunities and tax.

The purpose of the present study is to investigate the moderating effect of corporate governance on the relationship between the quality of independent audits and the tax gap in companies listed on the Tehran Stock Exchange.

A multivariate regression method based on combined data was used for data analysis. The statistical population of the research comprises the companies listed on the Tehran Stock Exchange and OTC.

The findings of the first hypothesis of the research show that there is a negative and significant relationship between the quality of independent auditing and the tax gap. In other words, increasing the quality of independent auditing reduces the tax gap. The results of the second hypothesis indicate that the moderating effect of corporate governance on the relationship between independent audit quality and the tax gap is positive and significant. This means that with the increase in corporate governance, the relationship between the quality of independent auditing and the tax gap intensifies.

To accurately diagnose tax issues, the Tax Administration should focus on the tenure and continuity of the relationship between audit institutions and companies. Companies can also utilize expert auditors from auditing organizations and seek accreditation from "A" rated institutions to enhance the quality of reported profits and earn investors' trust. The research's second hypothesis indicates a lack of proper corporate governance in Iran, suggesting the need to enhance corporate governance criteria as a monitoring mechanism.

Advertising is one of the effective factors of increasing the credibility of the firm and strengthening the social status of the firm among customers and tax avoidance. Also, based on agency theory, it is argued that audit committee chair overlaps can play a supervisory role by advising management to reduce the level of involvement in tax avoidance activities, or based on resource-based theory, due to communication and network channels, audit committee chair Overlapping audit committee chairpersons can encourage managers to further tax avoidance; Therefore, the present research examines the relationship between advertising and the amount of tax avoidance according to the audit committee chairman overlap according to the opposite theories of agency and based on resources in 142 firms (1172 firms - year) admitted to the Tehran Stock Exchange during the years 2012 to 2021. For this purpose, The hypothesis test was also done using Eviews econometric software and panel data statistical techniques. The results of the statistical tests of the research show that advertising reduces the firms tax avoidance. In other words; Firms with higher advertising spending and intensity have lower tax avoidance. Also, the results showed that the audit committee chairman overlap weakens this relationship. The findings of this study indicate that advertising helps to form the firms image and reputation among customers. If the firm is perceived as a firm with tax avoidance behavior, the benefits of advertising will be reduced. Greater customer awareness resulting from higher advertising expenditures increases the likelihood that customers will understand the firms aggressive tax behavior. Therefore, companies that spend more on advertising have less tax avoidance. Also, according to the resource-based theory, the audit committee chairman overlapping should consider the benefits of tax avoidance more than its disadvantages, which is the reduction of the firms image and credit, and use advertising as a strategy to improve the firms image and hide the firms opportunistic behavior. and at the same time play advisory roles for tax avoidance.

Tax is one of important accounts in financial statement of firms. Tax avoidance is using of law for decreasing tax that financial and nonfinancial variables have effect on it. The purpose of this research is The Survey of relationship of type of shareholders (institutional and firm investors) and corporate tax avoidance and The Ratio of ‎cash flow Listed Companies in Tehran Stock Exchange. The research from the viewpoint of purpose is practical and from the viewpoint of execution method is descriptive-correlation. For this research 3 hypotheses is compiled. To conduct this research, we use regression models via Eviews 8 and spss 21 statistical software. This subject surveyed in Tehran Stock Exchange listed companies 134 since 2017-2023. The findings show that there is significant relationship among type of shareholders (institutional and firm investors) and corporate tax avoidance and The Ratio of ‎cash flow Listed Companies in Tehran Stock Exchange. Tax avoidance is the use of laws to reduce taxes that are affected by financial and non-financial variables. This research is to improve the tax compliance procedure of valuable companies.

The main purpose of this research is to investigate the impact of tax avoidance on company performance, emphasizing the role of ownership structure. The current research is applied and from the methodological point of view, the correlation is causal type (post-event). The statistical population of the research is all the companies admitted to the Baghdad Stock Exchange and they were investigated in the period between 2017 and 2021. Also, to collect the required data and information, firstly, the library method and document studies were used. The basis, theoretical foundations and literature of the research were collected from specialized Latin books and magazines and explanatory notes of selected companies, compact discs of the image and statistical archive of the Baghdad Stock Exchange Organization. Then, the necessary data to test the research hypotheses were extracted by referring to the financial statements, the stock exchange website and other databases. In order to investigate the relationship between the variables, linear regression and Eviuz Naxe 8 software were used. The results of this research showed that the level of tax avoidance has a negativesitive and significant The effect on stock returns, as well as management ownership, has an inverse and significant relationship on the relationship between tax avoidance and stock returns, on the contrary, institutional ownership has no effect on the relationship of avoidance. There is no tax on stock returns.

The primary Purpose of the present research was to investigate the direct effect of labor costs on tax avoidance and the quality of financial and non-financial reporting. The secondary Purpose is to examine the indirect effect of labor costs on tax avoidance through the mediating role of financial and non-financial reporting quality.

To test the hypotheses, a sample of 105 companies over the period 2012-2021 was selected. Panel data regression analysis was used to analyze the data and examine the results.

The results indicated that labor costs improve the quality of financial and non-financial reporting. Furthermore, by enhancing reporting quality, labor costs indirectly decrease tax avoidance, although they do not directly affect tax avoidance.

The quality of financial and non-financial reporting mediates the relationship between labor costs and tax avoidance. 

Contribution: 

In addition to addressing the existing research gap, as this issue has not been previously investigated, this study highlights the importance of a company's entire labor force, not just the finance staff, in improving reporting quality. It emphasizes the role of the workforce in curbing tax avoidance.

The scope of this study is to investigate the effect of institutional shareholders' regulatory aspect on joint stock companies on topic of tax reductive policies. Since institutional shareholders are usually large and powerful shareholders of companies, it is natural that increase or decrease in their regulatory aspect has such a significant impact on managerial behaviors.

In this study, data from 83 companies listed in Tehran Stock Exchange between years 2012 and 2019 were gathered and analyzed.

Results of the first and the second hypotheses of the research indicate that there is an inverse and significant relation between institutional shareholders’ distraction and the effective rate of tax on cash and total book-tax differences, and the results of the third and the fourth hypotheses of the research indicate that in large corporations, relation between the mentioned variables is different.

The findings of the present study suggest that within the examined firms, the institutional shareholders’ distraction results in the equitable determination of tax liabilities, albeit coupled with tax evasion. Additionally, in larger corporations, the distraction and neglection of institutional shareholders contribute to the fair recognition and payment of taxes. This is attributed to the propensity of institutional shareholders to evade both the identification and settlement of tax obligations.

Contribution: 

In the context of this study, the influence of institutional shareholders’ distraction emerges as a novel variable. Given that this variable, which is a significant mechanism of corporate governance, has not been previously quantified in relation to tax avoidance, it offers a potential explanation for observed market phenomena.