Stock Liquidity and Corporate Tax Avoidance with Regard to Important of Corporate Governance and Financial Constraints

Document Type : Research Paper

Authors

1 Assistant Professor, Faculty of Economics, Aalame Tababaie University, Tehran, Iran

2 PhD Student of Economy, Faculty of Economics, Aalame Tababaie University, Tehran, Iran

3 MSc. of Accounting, Islamic Azad University, Tehran, Iran

4 MSc. of Accounting, Mazandaran University, Mazandaran, Iran

Abstract

In this research, the relationship between stock liquidity and corporate tax avoidance regarding corporate governance and financial constraints is examined. 120 companies listed on Tehran Stock Exchange for the period 1386-1391 were investigated as a sample of this research. Multivariate panel data regression model and generalized least squares models were used to test the hypotheses. The findings show that there is a significant relationship between stock liquidity and corporate tax avoidance. The review of subsidiary hypotheses shows that the relationship between stock liquidity and corporate tax avoidance in firms with more financial constraints is stronger than in firms with less financial constraints. Also, this relationship will be stronger in firms with lower corporate governance.

Keywords

References

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