The Role of Managerial Ability in Corporate Tax Avoidance: Evidence from Tehran Stock Exchange

Aghaei , Mohammad Ali; Hassani, Hassan; Bagheri, Hassan

doi:10.22054/qjma.2018.8912

Document Type : Research Paper

Authors

¹  Associate Professor of Accounting, Tarbiat Modares University (TMU)

² Master of Accounting, Tarbiat Modares University (TMU)

³  Master of Accounting &Lecturer of Islamic Azad University of Zanjan

https://doi.org/10.22054/qjma.2018.8912

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 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.

Keywords

References

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Empirical Studies in Financial Accounting

The Role of Managerial Ability in Corporate Tax Avoidance: Evidence from Tehran Stock Exchange

References

References

Volume 15, Issue 57 - Serial Number 57
April 2018
Pages 24-47

The Role of Managerial Ability in Corporate Tax Avoidance: Evidence from Tehran Stock Exchange

References

References

Volume 15, Issue 57 - Serial Number 57April 2018Pages 24-47

Volume 15, Issue 57 - Serial Number 57
April 2018
Pages 24-47