Effect of Financial Turmoil on Tax Avoidance of Companies Listed on The Tehran Stock Exchange

Document Type : Original Article

Authors

1 Corresponding AuthorAssistant Professor and faculty member, Economic Faculty, Kharazmi University, Tehran, Iran

2 MA in the Islamic Financial, Kharazmi University, Tehran, Iran

Abstract

Companies face various fluctuations during their life cycle that will cause financial turmoil in their business process. One of the first ways to get out of this turmoil is to reduce various costs, including taxes. Financially disadvantaged companies are more likely to avoid taxes. The purpose of this study is to investigate of the effect of financial market turmoil on tax avoidance of companies listed on the Tehran Stock Exchange. Methods in this research is tested by multivariate regression analysis. The statistical population of the present study includes listed companies in the years 2001 -2020, which due to the systematic elimination of 110 companies were selected to continue the research. The results indicate that there is a significant negative relationship between financial turmoil and tax avoidance. There is a positive and significant relationship between the current ratio and tax avoidance.

Keywords

Main Subjects

References

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Budget and Finance Strategic Research
Volume 2, Issue 4 - Serial Number 8
Winter Quarterly
March 2022
Pages 73-101

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  • Receive Date: 23 January 2022
  • Revise Date: 23 February 2022
  • Accept Date: 23 February 2022

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