Investigating the impact of audit committee characteristics on aggressive tax policy considering the role of financial constraints in the stock market

Mohammad Reza Razdar; Iman Abdollahi

doi:10.63053/ijmea.71

Authors

Mohammad Reza Razdar Department of Accounting, Qae.c., Islamic Azad University, Qaenat, Iran
Iman Abdollahi Phd Student in Accounting, Qae.c.,Isiamic Azad University, Qaenat, Iran

DOI:

https://doi.org/10.63053/ijmea.71

Keywords:

Aggressive tax policy, financial constraints, audit committee independence, financial expertise of audit committee, audit committee size

Abstract

The present study aims to examine the impact of audit committee characteristics on aggressive tax policy, considering the role of financial constraints in the Tehran Stock Exchange. The statistical population of the research includes all companies listed on the Tehran Stock Exchange during the years 2015-2019. To select the statistical sample, a purposeful elimination method was used, and after applying the relevant criteria, 172 companies were selected as the statistical sample. In the present research, the testing of hypotheses was conducted using regression analysis. The results of testing the first, second, and third research hypotheses showed that the independence of the audit committee has a negative and significant impact on the company's aggressive tax policy. The financial expertise of audit committee members has a negative and significant impact on the company's aggressive tax policy. The size of the audit committee has a negative and significant impact on the company's aggressive tax policy. Furthermore, the findings of the fourth, fifth, and sixth research hypotheses indicated that the impact of audit committee independence on aggressive tax policy is weaker in companies with fewer financial constraints. The impact of the financial expertise of audit committee members on aggressive tax policy is weaker in companies with fewer financial constraints. The impact of audit committee size on aggressive tax policy is weaker in companies with fewer financial constraints.

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