The Impact of The Board of Directors’ StructureonTax AvoidanceIn The Companies Listed in Tehran Stock Exchange
Journal Title: International Research Journal of Applied and Basic Sciences - Year 2013, Vol 4, Issue 9
Abstract
The aim of the present study is to examine the impact of board of directors’ structureon firm tax avoidance. For tax avoidance, the existence of an audit provision regarding tax status in an independent audit report was investigated which is called aggressive tax policies. For Board of Directors structure, the ratio of executive members of the Board of Directors (BD) and the ratio of their change and their independence were studied. The population of the survey was all the firmslistedon theStock Market of Tehranduring the period of 2010 to 2012(three years). Testing of principal hypotheses was performed by logistic regression method in order to evaluate the effect of a number of factors on the possibility of applying aggressive tax policies by companies. This model included 3 principal independent variables and 3 control variables. First, the research variables were examined one by one and from among the three principal independent variables, the independence of the BD had a significant relation with the aggressive tax policies. However, the ratio of nonexecutive members of the BD did not show a positive and significant relation with tax avoidance policies. Moreover, BD change cannot formulate the tax avoidance policies. Next, all three principal independent variables were incorporated in the model. The complete model included all principal predictors which were statistically significant, showing that this model has almost been able to identify the firms applying the aggressive policies. The model formulated the status of these policies before entering control variables of R2=.391. In general, 80.6% of cases were correctly classified. After entering the control variables of R2=.391, the variance of aggressive tax policies were explained. Next, based on forward method, and after entering the control variables, 82.1% of cases were correctly predictable. According to coefficient tables, before entering the control variables, two independent variables had a significant statistical relation with the model. In total, the principal independent variable explained the dual role of the Board of Directors – Chairman with a significant relation. The ratio of non-executive members and their changes showed a control variable of the financial lever and the aggressive tax policies with no significant relation.
Authors and Affiliations
MahboobehJalali*| Department of Accounting ,Shahrood branch , Islamic Azad University , Shahrood ,Iran. Jalali_mahbubeh@yahoo.com, FatemehJalali| Master of Science Accounting University of Tehran., Fatemeh Moridi| Faculty Member of Islamic Azad University Bandar Abbas Branch ,Iran., AdelehGarshasbi| Master of Science Accounting University of Tehran., MaryamForoodi| Master of Science Accounting University of Tehran.
Keywords
Related Articles
- EP ID EP5647
- DOI -
- Views 295
- Downloads 12
Prevalence of Malnutrition risk Based on Three Nutritional Risk Scores in Hospitalized Iranian children
Objective: It is essential for patients who are malnourished to be identified as soon as admitting to the hospital. Nutrition risk screening (NRS) has been validated to predict the risk of malnutrition. The aim of this s...
The Explanation of the Relation between Religious Orientation and Work Ethic: A Case Study of Urmia University Staff
Paying attention to work ethic is one of the success factors of every organization and is more related to the individual and organizational factors that are present in human forces and organizations rather than being inf...
Examination of the Relationship between Intellectual Belief and the Silver-Hanson Fourfold Learning Style
The aim of the research was to investigate the relationship between Intellectual Belief and the Silver-Hanson Fourfold Learning Style among students of Payame Noor University of Tabriz. This was a descriptive-correlation...
Mercury removal from wastewater by batch foam fractionation
A single batch foam fractionation column was employed to remove mercury from contaminated water having mercury concentration at trace levels. Mercuric chloride was used as a salt of mercury to provide mercuric ions while...
The survey of geomorpholical limitations of Jallal Abaad village
Environmental problems show the specific natural conditions of each area. Basically, establishment and spatial development of each habitation is under environmental and geographical conditions. Neighbour urban and rural...