Maryam Nobakht; Younes Nobakht
Abstract
Tax avoidance is one of the most important decisions managers, which can have a positive or adverse effect on a firm's value by preventing the transfer of the company's resources to the government. The purpose of this study is to investigate the impact of tax avoidance on firm value in companies listed ...
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Tax avoidance is one of the most important decisions managers, which can have a positive or adverse effect on a firm's value by preventing the transfer of the company's resources to the government. The purpose of this study is to investigate the impact of tax avoidance on firm value in companies listed to Tehran Stock Exchange with a sample of 180 firm's for the years 2008-2018. To test the hypotheses, multivariate linear regression got used and to assess the firm's value, two accounting criteria of free cash flow to the firm and free cash flow from the business have been used. Also, effective tax rate operating cash flow have been used to measure tax avoidance. The research findings showed that tax avoidance has a positive and significant effect on the accounting criteria of firm's value, which means that with increasing tax avoidance, the value of the company increases. The intensity of this increase in the estimated value of the firm through free cash flow from the business is greater than the estimated value of the firm through the free cash flow from the firm, which can be due to the neutralization of the financing effect. Thus, the research results confirm the theory of value creation in the relationship between tax avoidance activities and company value.
Yahya Hasas Yeghaneh; Shahrouz Rezaei
Abstract
Today, Commercial units are expected not only to increase their profits, but also to respond to the community, and to be useful to the community that interacts with it. On the other hand, The avoidance and tax evasion of companies are considered as a matter of concern in society, and society ...
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Today, Commercial units are expected not only to increase their profits, but also to respond to the community, and to be useful to the community that interacts with it. On the other hand, The avoidance and tax evasion of companies are considered as a matter of concern in society, and society Looking for the answer the question of whether companies and individuals pay their fair tax on social costs that are spent on them. The. The instruments used in this research are documents and financial information of the companies accepted in the Tehran Stock Exchange.The statistical sample consists of 164 companies admitted to the stock exchange during the period from 2004 to 2015. The results of the research show a significant relationship between corporate social responsibility and tax management costs on avoiding tax evasion
Mohammad Ali Aghaei ; Hassan Hassani; Hassan Bagheri
Abstract
In this study, the effect of managerial ability have been studied on tax avoidance in the companies listed in Tehran Stock Exchange. The Indicators used to measure avoid paying tax are the book effective tax rate, the cash effective tax rate and long-run cash effective tax rate. The sample includes 122 ...
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In this study, the effect of managerial ability have been studied on tax avoidance in the companies listed in Tehran Stock Exchange. The Indicators used to measure avoid paying tax are the book effective tax rate, the cash effective tax rate and long-run cash effective tax rate. The sample includes 122 companies listed in Tehran Stock Exchange for 87 to 93. The results showed that there is positive significant relationship between managerial ability and the three proxies used to avoid paying taxes. This means that higher ability managers engaging in more tax avoidance activities that reduce their firms’ cash tax payments. On the other hand, the results indicate that firms have good performance, managers with a high level of ability engaging in less tax avoidance activities. In general, the results show that in addition to the features of the firm, managerial ability influences the tax avoidance behavior of the firm.
Mohammad Ali Sari; Hosein Etemadi; Sahar Sepasi
Volume 14, Issue 54 , July 2017, , Pages 6-24
Abstract
In this study the relationship between tax avoidance and tax risk was investigated by measuring tax risk based on uncertainty approach using data collected from 114 companies during the years 2009 to 2015. For this purpose, the lower effective tax rate (ETR) and non-steady tax situation over time is ...
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In this study the relationship between tax avoidance and tax risk was investigated by measuring tax risk based on uncertainty approach using data collected from 114 companies during the years 2009 to 2015. For this purpose, the lower effective tax rate (ETR) and non-steady tax situation over time is considered as tax avoidance and tax risk, respectively. The results show that a significant negative relationship exists between the effective tax rate and tax risk. It means that companies with lower ETR cannot continuously preserve their low level of taxes, and therefore their tax risk would be high. Hence, the policy of decrease in taxes due to its uncertainty is risky tax avoidance. This finding provides new evidence about the impact of tax policy on the overall company performance. The results also show that income fluctuation increases tax risk and tax risk of small companies is higher than the big ones. Moreover, the financial leverage can reduce tax risk due to consequential regulatory mechanisms. It is noteworthy to mention that the findings of this study can be used in risk assessment of the corporate tax policies.
MohammadAli Sari
Abstract
In this study by measuring tax risk based on uncertainty approach, the relationship between tax avoidance and tax risk was investigated by applying data collected from 114 companies during the years 2009 to 2015. For this purpose, the lower effective tax rate (ETR) and non-steady tax situation over time ...
Read More
In this study by measuring tax risk based on uncertainty approach, the relationship between tax avoidance and tax risk was investigated by applying data collected from 114 companies during the years 2009 to 2015. For this purpose, the lower effective tax rate (ETR) and non-steady tax situation over time is considered as tax avoidance and tax risk, respectively. The results show that a significant negative relationship exists between the effective tax rate and tax risk. It means that companies with lower ETR cannot continuously preserve their low pay taxes, and therefore their tax risk would be high. Hence, the policy of tax decrease due to its uncertainty is a risky tax avoidance. This finding provides new evidence about the impact of tax policy on the overall company performance. The results also show that income fluctuation increases tax risk and tax risk of small companies is higher than big ones. Moreover, the financial leverage can reduce tax risk due to consequential regulatory mechanisms. It is noteworthy to mention that the findings of this study can be used in risk assessment of the corporate tax policies.
