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Tax Avoidance and Corporate Governance Mechanisms: Evidence from Tehran Stock Exchange

Author

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  • Reza Jamei

    (Master of Information Technology Management, Faculty of Management, Electronic Islamic Azad University, Iran.)

Abstract

This study aims to investigate the relationship between certain mechanisms of corporate governance and tax avoidance in companies listed on the Tehran Stock Exchange during the years 2011-2015. In this regard, the effect of some corporate governance indices (number of board members, nonduty members, managerial ownership and institutional ownership) on tax avoidance was investigated. The sample comprises 104 companies listed in the Tehran Stock Exchange. Eviews software was used for analyzing the data and multiple regression was used to test the hypotheses. Results indicated that there is no significant relationship between number of board members, proportion of non-duty members, institutional ownership and tax avoidance. Furthermore, there is no significant relationship between managerial ownership and tax avoidance.

Suggested Citation

  • Reza Jamei, 2017. "Tax Avoidance and Corporate Governance Mechanisms: Evidence from Tehran Stock Exchange," International Journal of Economics and Financial Issues, Econjournals, vol. 7(4), pages 638-644.
    • Handle: RePEc:eco:journ1:2017-04-74
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    References listed on IDEAS

    as
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    2. Armstrong, Christopher S. & Blouin, Jennifer L. & Jagolinzer, Alan D. & Larcker, David F., 2015. "Corporate Governance, Incentives, and Tax Avoidance," Research Papers 2134, Stanford University, Graduate School of Business.
    3. Hanlon, Michelle & Heitzman, Shane, 2010. "A review of tax research," Journal of Accounting and Economics, Elsevier, vol. 50(2-3), pages 127-178, December.
    4. Armstrong, Christopher S. & Blouin, Jennifer L. & Jagolinzer, Alan D. & Larcker, David F., 2015. "Corporate governance, incentives, and tax avoidance," Journal of Accounting and Economics, Elsevier, vol. 60(1), pages 1-17.
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    Cited by:

    1. Jamel Eddine Mkadmi & Arem Say & Sana Saida, 2022. "The Impact of Internal Governance Mechanisms on Tax Risk in Developing Countries: An Empirical Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 12(5), pages 86-94, September.
    2. Christos Pavlou & Antonios Persakis & George Kolias, 2025. "The Impact of Board Characteristics on Tax Avoidance: Do Industry Regulations Matter?," JRFM, MDPI, vol. 18(6), pages 1-22, May.

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    Keywords

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    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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