Accounting and Auditing Research

Accounting and Auditing Research

Effective Tax Rate and Risks Faced by Companies According to the Components of Tax Culture (Companies Accepted in Tehran Stock Exchange)

Document Type : Original Article

Authors
Ali Talaiezadeh 1
Iraj Norosh 2
attaallah mohammadi mlgharni 3
Jalil Sahabi 4
1 .
2 Accounting Professor, Tehran University, Tehran, Iran
3 Assistant Professor of Accounting, Islamic Azad University, Kish International Branch
4 Assistant Professor of Social Sciences, Department of Social Sciences, Sanandaj Branch, Islamic Azad University, Sanandaj, Iran
10.22034/iaar.2022.162396
Abstract
Since tax constitutes a major part of the government's income and is the most common and most important method of providing government spending to ensure social welfare and economic growth, therefore regardless of taxes and important factors in avoiding paying taxes, economic growth and increasing public welfare in the long term It is not possible. Therefore, the main purpose of the research is to examine the relationship between the effective tax rate and the risk of companies listed in the Tehran Stock Exchange, emphasizing the components of tax culture. The data of this research includes the financial information of listed companies from the beginning of 2007 to the end of 2016. In this research, the panel data model was used to check the hypotheses. The results showed that there is a significant and direct relationship between the lower effective tax rate and sub-indices of tax culture (tax laws, crimes and forgiveness, awareness, social justice), with future tax rate fluctuations and future stock price fluctuations. Therefore, it is necessary to use the funds from tax avoidance activities in the field of investment to increase the expected future cash flow and as a result reduce the cost of capital.
Keywords
Effective Tax Rate
Risk
Tax Culture
Panel Data
Accounting and Auditing Research
Volume 14, Issue 55
Summer 2022
Pages 141-158