Investigating the effect of environmental disclosure and cost of equity on tax avoidance, considering the role of the quality of corporate governance mechanisms

Articles in Press

Document Type : Research Paper

Authors

1 MSc. Student, Department of Accounting, Rafsanjan Branch, Islamic Azad University, Rafsanjan, Iran. E-mail: amir.hossein.salehi7705@gmail.com

2 *Corresponding Author, Assistant Prof., Department of Accounting, Rafsanjan Branch, Islamic Azad University, Rafsanjan, Iran. E-mail: Namazianali2010@gmail.com

3 Assistant Prof., Department of Accounting, Payam Noor University, Tehran, Iran. E-mail: n.khodabakhshi@pnu.ac.ir

10.22051/jera.2025.47628.3268

Abstract

Tax avoidance means using different methods to reduce the tax paid. These methods include using tax credits, reducing taxable income, etc. In practice, some companies engage in opportunistic behaviors such as risky tax behaviors at the same time as increasing voluntary environmental disclosure. Also, the cost of equity is one of the factors affecting tax avoidance. Therefore, the current research aims to investigate the effect of environmental disclosure and cost of equity on tax avoidance according to the role of the quality of corporate governance mechanisms. The statistical population of this research is the companies admitted to the Tehran Stock Exchange, and the linear regression method is used, and the statistical sample is the systematic elimination method of 105 companies in the study period of 1395 to 1401. According to the findings of this research, corporate governance mechanisms lead to strengthening the relationship between environmental disclosure and tax avoidance. Also, corporate governance mechanisms strengthen the relationship between the cost of equity and tax avoidance.

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Main Subjects

Empirical Research in Accounting

Articles in Press, Accepted Manuscript
Available Online from 12 January 2025

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History

  • Receive Date: 01 July 2024
  • Revise Date: 11 January 2025
  • Accept Date: 12 January 2025

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