The Role of Social Responsibility on the Relationship between Tax Avoidance and Financial Leadership

Subject Areas : Corporate social responsibility

Mahdi Filsaraei ¹ , Shaghayegh Ahrari ²

1 - Assistant Professor, Department of Accounting, Hakim Toos Higher Education Institute, Mashhad. Iran.
2 - MSc., Department of Accounting, Hakim Toos Higher Education Institute, Mashhad. Iran

Received: 2025-07-05 Accepted : 2025-09-08 Published : 2025-12-20

Keywords: Financial Leadership, Leadership Style, Social Responsibility, Tax Avoidance.,

Abstract :

Purpose:In financial reports, the tax is the government's share of the profits of companies; Tax avoidance means tax savings resulting from the reduction of public tax payments, which sometimes, its legality is doubted and is considered as the number of transactions to minimize tax liabilities. Companies have responsibilities towards stakeholders, society and individuals, the fulfillment of which depends on compliance with other responsibilities such as social responsibility, which can improve the company's financial leadership.

Method:The current research has studied the relationship between tax avoidance and financial leadership with the role of social responsibility, which is of an applied type in terms of division based on the purpose, and in terms of descriptive-correlational research method, it is a survey. In the research statistical community, all certified accountants were members of the certified accountants’ community. The samples were selected randomly and available, and the questionnaires were distributed to the statistical population. The collected versions, after removing the incomplete and distorted ones, 342 items were included in the analysis. The validity of the research tool was calculated using face validity, content validity and confirmatory factor analysis and its reliability through Cronbach's alpha. The measurement tool of the financial leadership style improvement questionnaire derived from the Bardens and Metzkas model (2007), the tax avoidance questionnaire of Hadian and Tadeli (2012) and the Kairat social responsibility questionnaire (2015). According to Sobhani et al.'s research (2019), it was done with a five-point Likert scale method. In order to analyze the data, structural equation modeling method with Smart PLS software was used.

Findings: The results indicated that there is a negative and significant relationship between tax avoidance and financial leadership style, and that social responsibility has a significant effect on the relationship between tax avoidance and financial leadership style.

Conclusion: It can be concluded that as tax avoidance increases, the type and style of financial leadership in companies change. In other words, these companies, in terms of leadership style, take advantage of gaps in legal requirements and accounting standards and place less emphasis on individual values.

References:

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