Investigating the Mediating Role of Managerial Quality on the Relationship between Tax Avoidance and Stock Price Crash Risk of Firms Listed in Tehran Stock Exchange

The purpose of this research is to investigate the relationship between tax avoidance and stock price crash risk for the companies listed in Tehran Stock Exchange (TSE). Besides, this research is to study the role of managerial ability on the relationship between tax avoidance and stock price crash risk. As a result, it utilizes NCSKEW, EXTR_SIGMA, and DUVOL as proxies for stock price crash risk. The research population consists of total companies listed in TSE and statistical sample consisting 103 companies listed in TSE which have been studied during 2008 to 2015. The multivariate linear regression is used for testing hypotheses of the research. The results suggest that there is a positive relationship between tax avoidance and stock price crash risk proxies. Also, the results showed that managerial ability has not a moderating role in the relationship between tax avoidance and stock price crash risk