The Impact of Financial Information Comparability on Aggressive Tax Avoidance with Respect to the Information Environment
https://doi.org/10.18288/1994-5124-2020-3-134-151
Аннотация
The overall tax avoidance perspective suggests that managers who seek opportunities to avoid paying taxes are pursuing financial abuse by creating a lack of transparency in the financial reporting environment. It seems that many companies are involved in tax avoidance. For this reason, it is crucial to determine the factors influencing the rate of tax avoidance. In this study, it is assumed that, in weak information environments, there is much incentive to avoid paying taxes. Thus, in this research, the effect of financial information comparability on aggressive tax avoidance with respect to the information environment has been investigated. To this end, 88 companies were examined during the period from 2011 to 2016. The required financial information was extracted by referring to the financial statements using Rahavard Novin software; summarized, classified and calculated in Excel software; and finally, analyzed through EViews software. By using the combined data and taking advantage of the generalized least squares regression test, it was established that the impact of financial statement comparability on aggressive tax avoidance in companies with a weaker information environment was more significant at a 90% confidence level. On the other hand, in a situation where there is a weak information environment, the ability to compare financial statements plays a significant role in reducing tax avoidance. Thus, it can reduce companies’ involvement in avoiding daring taxes, especially in a weak information environment. Furthermore, no reliable evidence was found concerning the effectiveness of financial information comparability in aggressive tax avoidance at a 95% confidence level.
Об авторе
Z. Farhadi
University of Bojnord
Иран
Иран
Zahra Farhadi — PhD (Accounting). Assistant Professor, Faculty of Humanity Sciences
4th km Road to Esfarayen, Bojnord, North Khorasan, 9453155111
Список литературы
1. Abdoli G., Abrishami H., Hoseinifard S. M. Favorable Tax Audit in Order to Reduce Tax Evasion in Income Tax: A Theoretical and Empirical Analysis. Taxjournal, 2016, vol. 23, no. 28, pp. 41-67.
2. Abdoli M. R., Shorevarzi M. R., Nirzayi S. Investigating the Relationship Between Expression and Diagnostic Tax Differences and Corporate Transparency. Quarterly Journal of Financial Accounting, 2013, vol. 5, no. 19, pp. 69-90.
3. Aflatooni A. Statistical Analysis in Accounting and Financial Management by Eviews. Tehran, Termeh Publications, 2014.
4. Alizadeh Tahbazi S. The Importance of Internal Information Environment in Tax Avoidance. Master Thesis in Accounting. Imam Khomeini International University, 2017.
5. Balakrishnan K., Blouin J., Guay W. Does Tax Aggressiveness Reduce Financial Reporting Transparency? SSRN Electronic Journal. September 2012. https://www.researchgate.net/publication/228171630_Does_Tax_Aggressiveness_Reduce_Corporate_Transparency.
6. Bame-Aldred C. W., Cullen J. B., Martin K. D., Parboteeah K. P. National Culture and FirmLevel Tax Evasion. Journal of Business Research, 2013, vol. 66, no. 3, pp. 390-396.
7. Beheshti Y, Royaee R. The Study of Correlation Between Personal Moral Philosophy and Attitudes to Tax Evasion. Iranian Journal of Value & Behavioral Accounting, 2018, vol. 2, no. 4, pp. 247-275.
8. Brochet F. D., Jagolinzer A. J., Riedl E. Mandatory IFRS Adoption and Financial Statement Comparability. Harvard Business School Working Paper, no. 11-109, 2011.
9. Choi J. H., Choi S. A., Myers L., Ziebart D. Financial Statement Comparability and the Informativeness of Stock Prices About Future Earnings. Contemporary Accounting Research, 2019, vol. 36, no. 1, pp. 389-417.
10. Dastourani R. The Importance of the Internal Information Environment Quality in Tax Avoidance. Master Thesis in Accounting. Raja Institute of Higher Education, 2016.
11. De Franco G., Kothari S., Verdi R. The Benefits of Financial Statement Comparability. Journal of Accounting Research, 2011, vol. 49, no. 4, pp. 895-931.
12. Desai M., Dharmapala D. Corporate Tax Avoidance and High-Powered Incentives. Journal of Financial Economics, 2006, no. 79, no. 1, pp. 145-179.
13. Foroghi D., Ghasemzad P. The Effect of Financial Statement Comparability on Future Earnings Response Coefficients. The Iranian Accounting and Auditing Review, 2015, vol. 22, no. 4, pp. 479-500.
14. Francis J., Pinnuck M., Watanabe O. Auditor Style and Financial Statement Comparability. The Accounting Review, 2014, vol. 89, no. 2, pp. 605-633.
15. Freedman J. Tax and Corporate Responsibility. Tax Journal, 2003, vol. 695, no. 2, pp. 1-4.
16. Friese A., Link S., Mayer S. Taxation and Corporate Governance - The State of the Art. In: W. Schön (ed.). Tax and Corporate Governance. Berlin Heidelberg, Springer-Verlag, 2008, pp. 357-425.
17. Greene W. H. Econometric Analysis. Upper Saddle River, NJ, Prentice Hall, 2002.
18. Habib A., Haris Muhammadi A., Jiang H. Political Connections, Related Party Transactions, and Auditor Choice: Evidence from Indonesia. Journal of Contemporary Accounting and Economics, 2017, vol. 13, no. 1, pp. 1-19.
19. Hanlon M., Heitzman S. A Review of Tax Research. Journal of Accounting and Economics, 2010, vol. 50, no. 2/3, pp. 127-187.
20. Huang H. H., Lobo G. J., Wang Ch., Xie H. Customer Concentration and Corporate Tax Avoidance. Journal of Banking & Finance, 2016, vol. 72, pp. 184-200.
21. Khajavi S., Kiamehr M. The Relation Study of Auditing Quality and Tax Avoidance in Listed Companies of Tehran Stock Exchange. Taxjournal, 2015, vol. 23, no. 26, pp. 87-108.
22. Mansouri N. Evaluating the Effect of Corporate Governance Mechanisms on Tax Planning in Companies Listed on Tehran Stock Exchange. Master Thesis in Accounting. Science and Research Unit, Islamic Azad University, West Azerbaijan, 2013.
23. Najafian Kh., Safari Gerayeli M. Accounting Information Comparability: A Review of Literature and Its Measurement Models. The Second Annual Conference on Economics, Management and Accounting, Ahvaz, Shahid Chamran University, Khuzestan Industry, Mine and Trade Organization, 2017.
24. Nasrollahi Azar K. The Impact of Corporate Characteristics on Tax Avoidance in Companies Listed in Tehran Stock Exchange. Master Thesis in Accounting. Faculty of Economic Sciences, Institute of Economic Affairs, Tehran, 2014.
25. Panahi H. Investigating the Relationship Between Profit Sustainability of Companies and Aggressive Tax Policies. Master Thesis in Accounting. Islamic Azad University, Shahrood, 2013.
26. Rezaei F., Jafariniaraki R. The Relationship Between Tax Avoidance and Firms’ Accounting Fraud. Taxjournal, 2015, vol. 23, no. 26, pp. 109-134.
27. Saei M., Sari M. Reported Tax Paid on Cash Flow Statement (The National and International Accounting Standards Survey). Taxjournal, 2013, vol. 21, no. 17, pp. 57-78.
28. Sahebi M. The Importance of Internal Information Environment in Tax Avoidance. Master Thesis in Accounting. Imam Reza University, 2016.
29. Sohn B. Ch. The Effect of Accounting Comparability on the Accrual-Based and Real Earnings Management. Journal or Accounting and Public Policy, 2016, vol. 35, no. 5, pp. 1-27.
30. Suk I., Zhao Y. Does Financial Statement Comparability Deter Aggressive Tax Avoidance? 2017. https://ssrn.com/abstract=3065250.
31. Xia C., Cao C., Chan K. Social Trust Environment and Firm Tax Avoidance: Evidence from China. North American Journal of Economics and Finance, 2017, no. 42, pp. 374-392.
32. Zemzem A., Ftouhi K. The Effects of Board of Directors’ Characteristics on Tax Aggressiveness. Research Journal of Finance and Accounting, 2013, vol. 4, no. 4, pp. 140-147.
33. Zeraat Pisheh Z. Investigating the Impact of the Board of Directors Independence on the Relationship Between Financial Distress and Aggressive Tax Policies in Companies Listed on Tehran Stock Exchange. Master Thesis in Accounting. University of Mazandaran, 2016.
Рецензия
Для цитирования:
Farhadi Z. The Impact of Financial Information Comparability on Aggressive Tax Avoidance with Respect to the Information Environment. Экономическая политика. 2020;15(3):134-151. https://doi.org/10.18288/1994-5124-2020-3-134-151
For citation:
Farhadi Z. The Impact of Financial Information Comparability on Aggressive Tax Avoidance with Respect to the Information Environment. Economic Policy. 2020;15(3):134-151. https://doi.org/10.18288/1994-5124-2020-3-134-151
Просмотров:
19
JATS XML
Послать статью по эл. почте 