The Impact of Effective Corporate Governance on the Relationship between Tax Gap and Future Profit Changes in Iranian Economy

Advances in Mathematical Finance and Applications

مقاله 6، دوره 5، شماره 4، دی 2020، صفحه 491-505   

نوع مقاله: Research Paper

شناسه دیجیتال (DOI): 10.22034/amfa.2020.674947

نویسندگان

Rasoul Karami¹؛ seyed Ali Vaez^{* 1، 2}؛ Ghasem Rekabdar^{1، 3}

¹Department of Accounting, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran

²Department of Accounting, Faculty of Economic, Shahid Chamran University, Ahvaz, Iran

³Department of Mathematics and Statistics, Faculty of Humanities ,Abadan Branch, Islamic Azad University, Abadan, Iran

چکیده

The Iranian economy in recent years is due to the development of economic sanctions, a sharp decline in the price of oil and the deficit resulting from revenue - dependent on oil revenues and the trend towards tax revenues. While comparing the volume of the Iranian economy with the amount of tax income indicates the existence of a relatively significant tax gap. The tax gap is the difference between the collected taxes and the tax required by the law. The purpose of this study is to answer the question whether corporate governance is effective and strong on the relation between tax gap and future earnings changes? The statistical population of the research in Tehran Stock Exchange (TSE) firms and statistical sample consists of 120 companies in the period of 2007-2017. In order to test the hypotheses, multivariate regression using mixed data - data approach has been used. The results indicate that there is a significant inverse relationship between the tax gap and future earnings changes. It can be argued that increasing the difference between earnings accounting earnings can be associated with decreasing interest in the next year and less stability. On the other hand, significant positive relation between corporate governance is efficient and strong with future earnings changes. because corporate governance will ultimately lead to more sustainable future gains due to the decline of discretionary accruals in discretionary accruals. It is also reinforced by the effect of the tax gap on future earnings changes in firms that have efficient corporate governance, and this effect is only seen for a year later. And is not effective for the second and third years.

کلیدواژه‌ها

Tax؛ tax gap؛ Corporate Governance Effectiveness؛ future earnings changes

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