Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

Investigating the relationship between tax planning and financial default with regard to the role of the life cycle in companies listed on the Tehran Stock Exchange.

Document Type : Original Article

Authors
mehdi panahi 1
ali akbar rajabi 1
fatemeh hasani 2
1 Assistant Professor, Department of Accounting, Varamin-Pishva Branch, Islamic Azad University, Pishva, Iran.
2 Master's degree student in Accounting, Varamin-Pishva Branch, Islamic Azad University, Pishva, Iran.
Abstract
In this study, the relationship between tax planning and financial default was examined with respect to the role of the life cycle in companies listed on the Tehran Stock Exchange for the period 1397 to 1402, with a total of 816 observations used for the research period. The statistical method used in this study is the multivariate regression method using the panel data method. The results of the study showed that there is a significant inverse relationship between tax planning and financial default, and the company life cycle affects the relationship between tax planning and financial default, in such a way that the life cycle of companies in the growth and maturity stages has an inverse effect on the relationship between tax planning and financial default, but the life cycle of companies in the decline stage has a direct effect on the relationship between tax planning and financial default; that is, companies in the growth and maturity stages have better tax planning and less financial default, but companies in the decline stage have weaker tax planning and more financial default.
Keywords
Fraudulent financial statements
cash flow shenanigans
the stock market

Subjects