The moderating effect of managerial ability on the relationship betwee tax avoidance and financial reporting quality

Managers of each organization have a very effective role in the success of that organization and can eliminate or prevent many of the existing problems. Therefore, the purpose of this study is to investigate the effect managerial ability to tax avoidance and the quality of financial reporting of listed companies in Tehran Stock Exchange. The statistical sample consists of 120 companies in the time period of 2011-2017. To measure the managerial ability was used the data envelopment analysis s technique in accordance with the model of Damirjan et al 2012 and to test the research hypotheses statistical analysis Combined regression was used. The findings of the research show that there is a negative and significant correlation between managerial ability and tax avoidance and positive and significant correlation between managerial ability and financial reporting quality managerial ability has positive and significant effect the relationship between tax avoidance and financial reporting quality.