Effects of Agency Cost and Liquidity on Tax Avoidance by the Use of Profitability

Abstract Objective: The purpose of this study is to analyze the simultaneous effects of liquidity and agency cost on tax avoidance, considering the profitability of the companies listed in the Tehran Stock Exchange in the period 2012 to 2016. Method: Three hypotheses were considered based on the sim...

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Autores principales:	Amin Hajiannejad (Ph.D), Sayed Rasool Danesh Sararoodi
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2019
Materias:	tax avoidance cost agency liquidity profitability Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/7097d80256084653aee828ca5a0870fe
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spelling	oai:doaj.org-article:7097d80256084653aee828ca5a0870fe2021-11-04T19:54:34ZEffects of Agency Cost and Liquidity on Tax Avoidance by the Use of Profitability2008-89142476-292X10.22103/jak.2019.11626.2609https://doaj.org/article/7097d80256084653aee828ca5a0870fe2019-05-01T00:00:00Zhttps://jak.uk.ac.ir/article_2266_85f5b21868fb139c6834b71725193c04.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XAbstract Objective: The purpose of this study is to analyze the simultaneous effects of liquidity and agency cost on tax avoidance, considering the profitability of the companies listed in the Tehran Stock Exchange in the period 2012 to 2016. Method: Three hypotheses were considered based on the simultaneous impacts of variables on tax avoidance. The data were collected by referring to databases as well as documentations review. Data analysis was performed, using a 2sls method in Eviews. Results: The results showed that profitability has the ability to explain the impacts of each of the variables of liquidity and agency cost as endogenous variables, properly. According to the results of simultaneous equations analysis, liquidity has positive impact and agency cost has negative impact on tax avoidance. Conclusion: More focus on profitability can be useful in improving the economic decisions of investors, and the analysis of the effects of variables such as agency cost and liquidity on tax avoidance in the companies with no regard to profitability will not lead necessarily to proper outcome.Amin Hajiannejad (Ph.D)Sayed Rasool Danesh SararoodiShahid Bahonar University of Kermanarticletax avoidancecost agencyliquidityprofitabilityAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 10, Iss 1, Pp 115-136 (2019)
institution	DOAJ
collection	DOAJ
language	FA
topic	tax avoidance cost agency liquidity profitability Accounting. Bookkeeping HF5601-5689
spellingShingle	tax avoidance cost agency liquidity profitability Accounting. Bookkeeping HF5601-5689 Amin Hajiannejad (Ph.D) Sayed Rasool Danesh Sararoodi Effects of Agency Cost and Liquidity on Tax Avoidance by the Use of Profitability
description	Abstract Objective: The purpose of this study is to analyze the simultaneous effects of liquidity and agency cost on tax avoidance, considering the profitability of the companies listed in the Tehran Stock Exchange in the period 2012 to 2016. Method: Three hypotheses were considered based on the simultaneous impacts of variables on tax avoidance. The data were collected by referring to databases as well as documentations review. Data analysis was performed, using a 2sls method in Eviews. Results: The results showed that profitability has the ability to explain the impacts of each of the variables of liquidity and agency cost as endogenous variables, properly. According to the results of simultaneous equations analysis, liquidity has positive impact and agency cost has negative impact on tax avoidance. Conclusion: More focus on profitability can be useful in improving the economic decisions of investors, and the analysis of the effects of variables such as agency cost and liquidity on tax avoidance in the companies with no regard to profitability will not lead necessarily to proper outcome.
format	article
author	Amin Hajiannejad (Ph.D) Sayed Rasool Danesh Sararoodi
author_facet	Amin Hajiannejad (Ph.D) Sayed Rasool Danesh Sararoodi
author_sort	Amin Hajiannejad (Ph.D)
title	Effects of Agency Cost and Liquidity on Tax Avoidance by the Use of Profitability
title_short	Effects of Agency Cost and Liquidity on Tax Avoidance by the Use of Profitability
title_full	Effects of Agency Cost and Liquidity on Tax Avoidance by the Use of Profitability
title_fullStr	Effects of Agency Cost and Liquidity on Tax Avoidance by the Use of Profitability
title_full_unstemmed	Effects of Agency Cost and Liquidity on Tax Avoidance by the Use of Profitability
title_sort	effects of agency cost and liquidity on tax avoidance by the use of profitability
publisher	Shahid Bahonar University of Kerman
publishDate	2019
url	https://doaj.org/article/7097d80256084653aee828ca5a0870fe
work_keys_str_mv	AT aminhajiannejadphd effectsofagencycostandliquidityontaxavoidancebytheuseofprofitability AT sayedrasooldaneshsararoodi effectsofagencycostandliquidityontaxavoidancebytheuseofprofitability
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Effects of Agency Cost and Liquidity on Tax Avoidance by the Use of Profitability

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