Journal of Iranian Accounting Review

Journal of Iranian Accounting Review

Examination of the Relationship between Social Responsibility, Economic Performance and Tax Avoidance in Companies Listed in the Tehran Stock Exchange

Document Type : Original Article

Authors
Roya Darabi 1
Yousef Pashanejad 2
Esmaeel Tadayonfard 3
1 Associate Professor of Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran
2 PhD Student of Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran
3 Instructor of Accounting, Sabzevar Branch, Islamic Azad University, Sabzevar, Iran
10.22055/jiar.2018.19748.1068
Abstract
This study examines the relationship between social responsibility, economic performance and tax avoidance in companies listed in Tehran Stock Exchange. For this purpose, 47 companies of listed companies on the Stock Exchange during the time period from 2009 to 2014 were examined. Testing the research hypotheses showed that if a company has a social responsibility, the means of tax avoidance and economic value added will be decrease by contrast, if a company lacks social responsibility, the mean of tax avoidance and the mean of economic value added will increase. The company size has a significant impact on the level of tax avoidance and the bigger (smaller) the size of the company is, the more (the less) the level of tax avoidance will be. The company size and efficiency of assets has a significant impact on the economic value added of the companies. The variables of financial leverage and the ratio of market value to book value do not have a significant impact on tax avoidance and economic value added.
Keywords
Social Responsibility
Tax Avoidance
Economic Value Added
Journal of Iranian Accounting Review
Volume 4, Issue 15
Summer 2017
Pages 67-92