The effect of audit fees, audit quality and board ownership on tax aggressiveness in companies listed on the Tehran Stock Exchange

Subject Areas : Role of Accounting & Auditing in Financial Discipline and Soundness

Aliakbar Rajabi ¹ , Hossein Hosseinzade ² , Zahra Kordbacheharamboo ³

1 - Department of Accounting, Varamin Branch, Islamic Azad University, Varamin, Iran
2 - PhD student in Public Administration, Sav.C, Islamic Azad University, Saveh, Iran
3 - Department of Accounting, Varamin Branch, Islamic Azad University, Varamin, Iran

Received: 2024-12-05 Accepted : 2025-05-17 Published : 2025-06-03

Keywords: Audit fees, audit quality, board ownership, tax aggressiveness,

Abstract :

Purpose: In the economy of most countries, tax is the main financial source of the government in the revenue part of the budget. Tax aggressiveness reduces taxes, which are the main financial source of the government, and the factors affecting it have become very important. Therefore, this research has focused on the effect of audit fees, audit quality, and board ownership on the tax aggressiveness in companies listed on the Tehran Stock Exchange.

Methodology: To test the hypotheses of the research, multivariate regression was used based on combined data with the EViews software. The statistical population in this research is the companies listed on the Tehran Stock Exchange. The statistical sample included 130 companies during the years 2015 to 2022, which were selected by systematic elimination method.

Findings: The results of three research hypotheses showed that audit fees, audit quality and board ownership have a positive and significant effect on tax aggressiveness.

Originality: Paying higher fees to auditors could encourage companies to use tax fraud methods more aggressively. High-quality auditors may allow companies to resort to risky tax practices out of concern for protecting their reputation and professional interests. Finally, the ownership of company board members creates an incentive to protect their financial interests in the company.

References:

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