Exploring the Nexus between Corporate Tax Avoidance, Organizational Capital, and Firm Characteristics

Tax avoidance practices wield a substantial influence on the fiscal landscape, shaped by the strategic decisions of businesses and their organizational capital (OC), a vital reservoir of strategic assets unique to each firm. This study delves into the nuanced relationship between corporate tax avoid...

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Main Authors: Hamideh Asnaashari, Reza Daghani, Morteza Bagheri, Seyed Sadegh Hadian
Format: Article
Language:English
Published: Ferdowsi University of Mashhad 2024-07-01
Series:Iranian Journal of Accounting, Auditing & Finance
Subjects:
Online Access:https://ijaaf.um.ac.ir/article_44439_5561cdc23adc31d9e259dae750b9ab7e.pdf
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author Hamideh Asnaashari
Reza Daghani
Morteza Bagheri
Seyed Sadegh Hadian
author_facet Hamideh Asnaashari
Reza Daghani
Morteza Bagheri
Seyed Sadegh Hadian
author_sort Hamideh Asnaashari
collection DOAJ
description Tax avoidance practices wield a substantial influence on the fiscal landscape, shaped by the strategic decisions of businesses and their organizational capital (OC), a vital reservoir of strategic assets unique to each firm. This study delves into the nuanced relationship between corporate tax avoidance and OC within the Iranian context, while also examining the moderating effects of firm size and CEO overconfidence. Leveraging a dataset spanning from 2016 to 2021, comprising 142 firms listed on the Tehran Stock Exchange, and employing advanced multivariate regression techniques, our analysis unveils a significant and positive association between tax avoidance strategies and OC. Notably, this relationship remains consistent across firms of varying sizes, indicating that size does not significantly moderate this association. Furthermore, our investigation reveals the influential role of CEO overconfidence in shaping the intricate interplay between tax avoidance and OC. These findings contribute to the ongoing discourse on corporate tax strategies, offering insights applicable to firms of diverse sizes and magnitudes.
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publisher Ferdowsi University of Mashhad
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series Iranian Journal of Accounting, Auditing & Finance
spelling doaj-art-a32293e9e3604161ac57dbeddbd48f0d2025-08-20T02:35:12ZengFerdowsi University of MashhadIranian Journal of Accounting, Auditing & Finance2717-41312588-61422024-07-01839311010.22067/ijaaf.2024.44439.140444439Exploring the Nexus between Corporate Tax Avoidance, Organizational Capital, and Firm CharacteristicsHamideh Asnaashari0Reza Daghani1Morteza Bagheri2Seyed Sadegh Hadian3Assistant Professor of Accounting, Management and Accounting Faculty, Shahid Beheshti University, Tehran, IranAccounting Department, Management and Accounting college, Allameh Tabatabai UniversityMSC student in Accounting, Management and Accounting Faculty, Shahid Beheshti University, Tehran, IranMSC student in Auditing, Economic and Administrative Science Faculty, Ferdowsi University of Mashhad, Mashhad, IranTax avoidance practices wield a substantial influence on the fiscal landscape, shaped by the strategic decisions of businesses and their organizational capital (OC), a vital reservoir of strategic assets unique to each firm. This study delves into the nuanced relationship between corporate tax avoidance and OC within the Iranian context, while also examining the moderating effects of firm size and CEO overconfidence. Leveraging a dataset spanning from 2016 to 2021, comprising 142 firms listed on the Tehran Stock Exchange, and employing advanced multivariate regression techniques, our analysis unveils a significant and positive association between tax avoidance strategies and OC. Notably, this relationship remains consistent across firms of varying sizes, indicating that size does not significantly moderate this association. Furthermore, our investigation reveals the influential role of CEO overconfidence in shaping the intricate interplay between tax avoidance and OC. These findings contribute to the ongoing discourse on corporate tax strategies, offering insights applicable to firms of diverse sizes and magnitudes.https://ijaaf.um.ac.ir/article_44439_5561cdc23adc31d9e259dae750b9ab7e.pdfcorporate tax avoidanceorganizational capitalceo overconfidencefirm sizetehran stock exchange
spellingShingle Hamideh Asnaashari
Reza Daghani
Morteza Bagheri
Seyed Sadegh Hadian
Exploring the Nexus between Corporate Tax Avoidance, Organizational Capital, and Firm Characteristics
Iranian Journal of Accounting, Auditing & Finance
corporate tax avoidance
organizational capital
ceo overconfidence
firm size
tehran stock exchange
title Exploring the Nexus between Corporate Tax Avoidance, Organizational Capital, and Firm Characteristics
title_full Exploring the Nexus between Corporate Tax Avoidance, Organizational Capital, and Firm Characteristics
title_fullStr Exploring the Nexus between Corporate Tax Avoidance, Organizational Capital, and Firm Characteristics
title_full_unstemmed Exploring the Nexus between Corporate Tax Avoidance, Organizational Capital, and Firm Characteristics
title_short Exploring the Nexus between Corporate Tax Avoidance, Organizational Capital, and Firm Characteristics
title_sort exploring the nexus between corporate tax avoidance organizational capital and firm characteristics
topic corporate tax avoidance
organizational capital
ceo overconfidence
firm size
tehran stock exchange
url https://ijaaf.um.ac.ir/article_44439_5561cdc23adc31d9e259dae750b9ab7e.pdf
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AT rezadaghani exploringthenexusbetweencorporatetaxavoidanceorganizationalcapitalandfirmcharacteristics
AT mortezabagheri exploringthenexusbetweencorporatetaxavoidanceorganizationalcapitalandfirmcharacteristics
AT seyedsadeghhadian exploringthenexusbetweencorporatetaxavoidanceorganizationalcapitalandfirmcharacteristics