Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

The Impact of Board Independence on the Relationship Between Reducing the Dividend Compared to the Past Year and Avoiding Corporate Taxes

Document Type : Original Article

Authors
amir ahmad agha alikhani 1
ali pormohamad barogh 1
mohamadreza agha alikhani 2
rasoul hoseini 3
1 ghazali
2 shamsipor
3 zanjan
Abstract
Tax avoidance is a type of tax loophole to reduce taxes that can be made by transferring income to a low-tax area or transitional pricing. Tax avoidance can be measured through a variety of methods, including effective tax expense rates and tax differences. The purpose of the present study is to investigate the effect of board independence on the relationship between the reduction of dividends compared to the previous year and tax avoidance in listed companies in Tehran Stock Exchange. The statistical sample of the present study consists of 114 companies for the period of 2012-2012 and multivariate regression was used to test the research hypotheses. Also, Jark test was used for data mana and the Levine, Lin and Chu test were used for detecting data mana. Specialized Excel software was also used to process, classify and prepare variables and to enter into Eviews software. The results show that the independence of the board of directors as part of the management structure and part of the corporate governance mechanisms is not able to influence tax management and the relationship between the reduction of dividends compared to the previous year and tax avoidance.
Keywords
Decrease in dividends compared to last year
board independence
tax avoidance