The Relationship between Tax Avoidance and Bank Costs of Debt Case Study: Accepted Companies in Tehran Stock Exchange
Author(s)
Akram Afshar , Ali Bayat , Kamran Yeganegi ,
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Abstract
This study aims to investigate the relationship between tax avoidance and costs of debt of accepted companies in Tehran Stock Exchange. Regarding essence and purpose, this study is applied which can be used by Tax Affairs Organization, Financial managers of companies, banks, universities, higher education centers, researchers, and a wide range of users. Regarding research method, this research is the descriptive-analytic type of correlation regression analysis. Since this study examines the extant relationships between variables and data are collected from the environment which has naturally existed or the past events which have occurred without direct interference of the researcher, it is post-event research and is based on panel data analysis. In this study, financial information of 67 accepted companies in Tehran Stock Exchange has been investigated during the period of 2005 to 2015. To analyze the obtained results from the research, SPSS 20 and Eviews 7 have been used. Results of the study show that increasing cost of debt, level of tax avoidance (temporary tax disputes, the effective rate of tax liability, and effective rate of long-term tax liability) also increases.
Keywords
Cost, Bank debt, Tax avoidance, Tehran Stock Exchange
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