The Effect of Tax Strategy on the optimal use of Resources by Management with an Emphasis on the Manager Competence and Corporate Governance

Document Type : Research Paper

Authors

1 Asistance Prof in Accounting, Department of accounting, Maragheh Branch, Islamic Azad University, Maragheh, Iran

2 Master of Accunting, Marand Branch, Islamic Azad University, Marand, Iran

Abstract

This research aims to examine the impact of tax strategies on the optimal use of resources in companies listed on the Tehran Stock Exchange, with particular attention to management competence and corporate governance mechanisms. The sample comprises 116 companies listed on the Tehran Stock Exchange over a ten-year period from 2014 to 2023. Data analysis was conducted using EViews software, employing statistical tests and fixed-effects multivariate linear regression with panel data to test hypotheses. Results indicate that tax strategies, based on criteria of abnormal tax avoidance and tax sheltering, significantly and negatively affect the optimal use of resources. Furthermore, management competence positively influences the optimal use of resources and moderates the negative effect of tax strategies (specifically abnormal tax avoidance), mitigating it as competence increases. Similarly, corporate governance positively affects the optimal use of resources and moderates the negative impact of tax avoidance (based on abnormal tax avoidance and tax sheltering), enhancing resource allocation efficiency.

Keywords

Main Subjects

References

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Journal of Accounting Advances
Volume 16, Issue 2
2024
Pages 31-66

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History

  • Receive Date: 23 February 2024
  • Revise Date: 15 February 2025
  • Accept Date: 22 February 2025

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