Investigating the Relationship between Environmental Uncertainty, Institutional Ownership and Tax Avoidance

Document Type : Original Article

Authors

1 Department of Accounting, Faculty of Economics and Management, Semnan University, Iran

2 Department of Accounting, Assistant Professor, Parandak Institute of Higher Education, Parandak, Iran

3 Master, Semnan University, Semnan, Iran

4 Master ,Shahid Beheshti University, Tehran, Iran

10.22034/iaar.2020.112785

Abstract

The purpose of this study was to investigating the effects of environmental uncertainty and institutional ownership on tax avoidance. Tax avoidance includes a set of policies that lead to tax reductions in the framework of laws and regulation. For this purpose, using the data of 106 companies listed in Tehran stock exchange during the period of 1389-95, the index of environmental uncertainty and institutional ownership were calculated and their effect on tax avoidance were investigated. For this purpose, the effective tax rate of long term cash has been used to measure tax avoidance. To analyze the data and test hypotheses has been used multiple linear regression model .Evidence and results of the research showed that environmental uncertainty has a direct and significant effect on tax avoidance and the variable of institutional ownership has a negative effect on tax avoidance.

Keywords

Accounting and Auditing Research
Volume 12, Issue 46
July 2020
Pages 133-146

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