The effect of corporate governance mechanisms, profitability, financial leverage and profit management on tax avoidance in Tehran Stock Exchange

The purpose of this research is to investigate the impact of corporate governance mechanisms, profitability, financial leverage and profit management on tax avoidance in Tehran Stock Exchange. The information obtained in relation to the research variables was entered into an Excel spreadsheet and then analyzed using Eviuse 11 software. The statistical population of this research is based on the method of systematic elimination from among 159 companies admitted to the Tehran Stock Exchange during the period from 2010 to 2019. The results of hypotheses one to five respectively showed that the number of audit committee members has an inverse and significant effect on tax avoidance. The independence of the board of directors has an inverse and significant effect on tax avoidance. Company profitability has an inverse and significant effect on tax avoidance. The financial leverage of the company has a direct and significant effect on tax avoidance. Profit management has a direct and significant impact on tax avoidance. Tax avoidance can be a reflection of the agency problem theory and may lead to tax decisions that follow the manager's personal interests. Therefore, one of the challenges facing the shareholders and the board of directors is to find control methods and incentives to minimize agency costs. Companies that have a high amount of financial leverage; due to the increase in the risk of bankruptcy; Most of them try to avoid taxes. Avoiding paying taxes can provide financial resources to the company, which will increase the profitability and reduce the financial leverage of the company, which will be accompanied by manipulation of financial statements and profit management, and on the opposite point, it can cause the company's discredit and increase the cost of agency. .