Modeling for Identifying and Prioritizing the Factors Affecting the tax reporting aggressiveness Using principal component analysis method

Tax is considered as the main tool for earning income for governments to achieve their economic and social goals. On the other hand, tax expenditures lead to the withdrawal of liquidity from companies and reduce stockholders' dividend, so corporate executives try to reduce or postpone their income tax. The purpose of this study is to Modeling for Identifying Effective Factors Affecting Tax Reporting Aggressiveness in Iran capital market. In this study, effective factors on tax reporting aggressiveness based on empirical studies, theoretical foundations and principal component analysis (PCA) method are divided into four financial, non-financial, governance and managerial indicators. In order to test the research hypotheses, 75 companies listed in Tehran Stock Exchange during 2008-2017 were surveyed. Since the dependent variable is a virtual variable, logistic regression and correlation methods have been used to estimate the model. The results show that financial indicators have no significant relationship with tax reporting aggressiveness, but non-financial, governance and management indices have significant relationship with tax reporting aggressiveness. Other findings indicate that sovereign, managerial, non-financial and financial indices have the most impact on tax reporting aggressiveness, respectively. Other findings indicate that governmental, managerial, non-financial and financial indices have the most impact on bold tax reporting, respectively.