Investigating the Relation between Managerial efficiency and Tax aggressiveness reporting on financial reporting readability in Iran capital market: Experimental testing of signaling theory and ambiguous management hypothesis

The main purpose of this study was to investigate the effect of managers' performance and audible tax reporting on the readability of financial reporting. 1276 views. To measure the efficiency of managers, the Demarjian model has used, to measure the bold tax reporting, the difference between declared and diagnostic taxes, and to measure the readability of financial reporting, two indicators of flash and text length have used. In order to analyze the data and test the hypotheses, multivariate regression with combined data model and estimated least squares (EGLS) method used using Ives software version 10. The results show that the efficiency of managers has a positive and significant relationship with the readability of financial reporting, but bold tax reporting has a negative and significant relationship with the readability of financial reporting. Managers' performance also has a significant effect on the relationship between bold tax reporting and financial reporting readability. In addition to these results, the sensitivity analysis test showed that the use of an alternative criterion for measuring the readability of financial reporting has no effect on the main results of the research and the research results are robust.