An Investigation of the Impact of Corporate Governance Characteristics on Tax Management of Listed Companies in Tehran Stock Exchange (TSE)

The purpose of this paper is to investigate the relationship between corporate governancecharacteristics and tax management of listed companies in Tehran Stock Exchange (TSE). In this study, Board Size, Board Composition, Duality of the CEO, and Auditor Size are used as corporate governance characteristics. For measuring tax management, the five year average of effective tax rate is used. The data used has been extracted from firms listed in the Tehran Stock Exchange (TSX) in the period between 2007-2010. For data analysis and hypothesis testing, linear multivariable regression model has been used. The results from hypotheses testing show that there isn’t a significant relationship between Board Size and tax management. In other words, Board Size doesn’t have any impact on tax management in Tehran Stock Exchange (TSE). Also, the results show that there is a significant and negative relationship between Board Composition and effective tax rate. Other results show that there is a significant and positive relationship between duality of the CEO and effective tax rate. Also, there is a significant and negative relationship between Auditor Size and tax management.