Impacts of Firms’ Internal Information Environment on Tax Avoidance (Case Study: Companies Listed in Tehran’s Stock Exchange)

Jahanbakhsh Ghafoori, Mahmood Rahmani


The main purpose of this study is to investigate the impacts of firms’ internal information environment on tax avoidance. The research method includes a data panel and is generally of semi-experimental fashion. The population of research is consisted of the entire companies and firms listed in Tehran’s stock exchange as 496 firms from the beginning of 2007 until the end of financial year of 2014. Among the population, a number of 86 firms were selected as the sample through systematic omitting method. For the purpose of data analysis, the tests of T and multivariate linear regression were incorporated into the study. Results indicate that impact of quality of internal information on tax avoidance is higher in those companies in which information play a more important role. Firms which operate under geographic dispersion make more use of the quality of their internal information, because this information helps them towards reduced tax avoidance. High quality of internal information and commercial dispersion force these firms towards avoiding larger taxes. In addition, quality of internal information is not effective on firms which are under reconstruction status.

Anahtar Kelimeler

Quality of internal information, Tax avoidance, Geographic dispersion, Commercial dispersion.

Tam Metin:

PDF (English)


Allingham, Michael, G. & A. Sandmo (1972). “Income Tax Evasion: A Theoretical Analysis”. Journal of Public Economics, 1: 323-338.

Bushman, R. M., Indjejikian, R. J. & Smith, A. (1995). Aggregate Performance Measures in Business Unit Manager Compensation: The Role of Intrafirm Interdependencies. Journal of Accounting Research, 33, 101-128.

Chapman, C. S. & Kihn, L. A. (2009). Information System Integration, Enabling Control and Performance. Accounting, Organizations and Society, 34, 151-169.

Chenhall, R. H. & Morris, D. (1986). The Impact of Structure, Environment, and Interdependence on the Perceived Usefulness of Management Accounting Systems. The Accounting Review, 61(1), 16-35.

Desai, M., Dyck, I. & Zingales, L. (2007). “Theft and Taxes” Journal of Financial Economics, 84: 591–623.

Dhaliwal, D., Gleason, C. & Mills, L. (2004). “Last-Chance Earnings Management: Using the Tax Expense to Meet Analysts’ Forecasts” Contemporary Accounting Research, 21: 431–459.

Graham, J. R. & Tucker, A. (2006). Tax Shelters and Corporate Debt Policy. Journal of Financial Economics. 81, 563–594.

Gravile, J. G. (2009). Tax Havens: International Tax Avoidance and Evasion. Congressional Research Service Report for US Congress.

Hanlon, M. & S. Heitzman (2010). A Review of Tax Research, Journal of Accounting and Economics, 50.

Jam, Farhad (2000). "The Behavior of Professional Tax Consultants: Tax Avoidance and Tax Evasion" of the Auditor, 6: 41-43.

Khoddami Pour, Ahmad A. & Rostaee, Shokofe (2013). The Relationship between the Smoothing Taxable Income with Tax Avoidance and Its Information Content. Bahonar University of Kerman.

Maydew, E. L. (2001). Empirical Tax Research in Accounting: A Discussion. Journal of Accounting and Economics, 31, 389-403.

Mcguire, S. T., Omer, T. C. & Wilde, J. H. (2012). Investment Opportunity Sets, Operating Uncertainty, and Capital Market Pressure: Determinants of Investments in Tax Shelter Acitivities? Working Paper. Texas A&M University.

Mousavi Jahromy, Yegane & Tahmasebi, F. (2009). Tax Evasion in the VAT System: A Theoretical Model, Journal of Taxes, New Era, Fifth Edition (Issue 53).

Noor, R. M., Fadzillah, N. S. & Mastuki, N. A. (2010). Corporate Tax Planning: A Study on Corporate Effective Tax Rates of Malaysian Listed Companies. International Journal of Trade, Economics and Finance, 1(2), 189-193.

Pejoyan, Jamshid (2001). Public Sector Economy (Taxes) Tehran: Tarbiat Modarres University.

Rezai, Farzin, Kanani-Amiri, M. & Jafari, Amine, Isfahani, Shadi (2013). The Effect of Corporate Social Responsibility on Tax Avoidance. Non-Governmental Non-Profit Institution of Higher Education.

Scotchmer, S. & Slemrod, J. (1989). Randomness in Tax Enforcement. Journal of Public Economics, 38(1), 17-32.



  • Şu halde refbacks yoktur.

Telif Hakkı (c) 2017 Journal of History Culture and Art Research

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.