The effect of implementing web-based financial reporting model on stock market and tax avoidance

Subject Areas :

Sara Makvandi ¹ , Bahareh Banitalebi Dehkordi ² , Hamid Reza Jafari ³

1 - Ph.D student in Accounting, Shahrekord Branch, Islamic Azad University, Shahrekord, Iran.
2 - Associate Professor of Accounting, Shahrekord Branch, Islamic Azad University, Shahrekord, Iran
3 - Assistant Professor of Accounting, Shahrekord Branch, Islamic Azad University, Shahrekord, Iran

Received: 2024-01-11 Accepted : 2024-02-13 Published : 2024-02-20

Keywords: Stock market, tax avoidance, web financial reporting,

Abstract :

Purpose: The purpose of this research is to first provide a comprehensive index to measure the implementation of financial reporting on the web and then to examine the effect of the present model. Methodology: This research is developmental-applicative in terms of results and on the stock market and tax avoidance among 167 companies admitted to the Tehran Stock Exchange during the years 2009 to 2020. The components of the web-based financial reporting implementation model were determined through interviews and distribution of questionnaires among experts, and the weights and importance of the criteria were determined using Shannon's entropy multi-criteria decision-making method. The relationship between the implementation of online financial reporting as a hidden variable and its measurement items was also measured through confirmatory factor analysis. Findings: Based on the findings of the research, the components of the presented model include 8 indicators of organizational factors, financial, economic, social, political, human, technology and finally the cultural factor along with 67 sub-factors. Also, the findings of the quantitative section based on structural equations show web-based financial reporting improves stock market efficiency and reduces tax avoidance. Originality: A web-based financial reporting system is one of the new approaches whose implementation and implementation plays an influential role in the growth and development of financial markets and consequently tax avoidance, because through the reduction of information processing costs, the possibility of better tax supervision and by increasing the quality of information, it leads to stronger corporate governance and less information asymmetry.

References:

احمدی لویه، افشین، نیکومرام، هاشم، و بنی مهد، بهمن. (1400). حق انتخاب حسابرس و اجتناب مالیاتی بر اساس نظریه انتخاب گلاسر. دانش حسابداری و حسابرسی مدیریت، 10(38)، 1-16.‎ https://www.jmaak.ir/article_17543.html
حصاری، جواد، و سعیدی، هادی. (1399). بررسی رابطه بین افشای داوطلبانه زبان گزارشگری مالی توسعه ‌پذیر و ارزش‌گذاری بازار سهام و نقش حاکمیت شرکتی در شرکت‌های پذیرفته‌ شده در بورس اوراق بهادار تهران. پیشرفت‌های مالی و سرمایه گذاری، 1(1)، 54-37. doi: 10.30495/afi.2021.1921144.1008
رحیمی کاکلکی مینا، بنی طالبی دهکردی، بهاره، و پیک فلک، جمشید. (1396). عوامل مؤثر بر رعایت اخلاق حرفه‌ای حسابداران. اخلاق در علوم و فناوری، 1۲(۱)، ۷۵-۸۷. https://ethicsjournal.ir/article-1-537-fa.html
رهنمای رودپشتی، دیانتی دیلمی، و فخاری، فاطمه السادات. (2018). نرخ موثر مالیاتی نقدی معیار سنجش اجتناب مالیاتی یا مدیریت سود افزایشی؟. پژوهش‌های تجربی حسابداری، 7(4)، 93-116.‎ doi: 10.22051/jera.2017.2802.
داروغه حضرتی، فاطمه، تفتیان، اکرم و معین الدین، محمود. (1400). واکاوی عوامل مؤثر بر اقلام محتوایی گزارشگری یکپارچه مبتنی بر وب با رویکرد شهروند شرکتی. حسابداری مدیریت، 14(50)، 83-100.‎ doi: 10.30495/JMA.2021.19290
عاطفی، مرجان، و برزگر، الهه. (1396). رابطه اخلاق پولی و ادراک اخلاقی دانشجویان حسابداری با درک اقدامات تردید آمیز. اخلاق در علوم و فناوری، (12)2، 126-117.http://ethicsjournal.ir/article-1-618-fa.html
عزیزخانی، مسعود، ایمانی برندق، محمد و مردانی، حمیدرضا. (1394). تأثیر زبان گزارشگری مالی گسترش ‌پذیر(XBRL) بر حسابرسی: فرصت یا چالش. پژوهش‌های تجربی حسابداری، (5)1، 37-23. doi: 10.22051/jera.2015.2001
فخاری حسین، و طهماسبی خورنه، سعید. (1395). بررسی رابطه‌ متقابل اجتناب مالیاتی و کیفیت افشای اطلاعات با استفاده از سیستم معادلات همزمان (3SLS). پژوهشنامه مالیات، 32(24)، ۱۲۵-۱۴۴. http://taxjournal.ir/article-1-1041-fa.html
محمدزاده سالطه، حیدر، و آزادپور، محمد. (2017). تاثیر عوامل مربوط به هزینه‌های محرمانه بر کیفیت گزارشگری مالی با تاکید بر اجتناب مالیاتی. پژوهشنامه مالیات، 35(25)، 180-201.‎ http://taxjournal.ir/article-1-922-fa.html
مستانه اکبر، و پاک مرام، عسگر. (1395). نقش سهامداران نهادی در رابطۀ بین کیفیت افشا و اجتناب مالیاتی. پژوهشنامه مالیات، 31(24)، ۱۴۵-۱۷۴. http://taxjournal.ir/article-1-985-fa.html
مکوندی، سارا، بنی طالبی دهکردی، بهاره، و جعفری، حمیدرضا. (1402). ارائه الگویی برای سنجش اجرای گزارشگری مالی تحت وب. فصلنامه مهندسی مدیریت نوین، 9(4)، 52-78. doi: 10.30495/jmemiau.2024.708482
مکوندی، سارا، بنی طالبی دهکردی، بهاره، جعفری، حمیدرضا. (1402). تأثیر اجرای گزارشگری مالی تحت وب بر مدیریت سود با تأکید بر نقش تعدیل‌کننده هزینه نمایندگی. توسعه و سرمایه، 8(2)، 113-129.‎ doi: 10.22103/jdc.2022.19955.1279
ناظمی اردکانی، مهدی، عارف منش، زهره و دهقان دهنوی، سمیه. (1398). تأثیر گزارشگری مالی اینترنتی بر ارزش شرکت. پژوهش های تجربی حسابداری، 9(2)، 323-350. doi: 10.22051/jera.2018.18280.1877
نوبخت، مریم و نوبخت، یونس. (1399). تأثیر اجتناب از پرداخت مالیات بر معیارهای حسابداری ارزش شرکت: جریان نقد آزاد برای واحد تجاری و جریان نقد آزاد ناشی از کسب و کار. مطالعات تجربی حسابداری مالی، 17(68), 97-119. doi: 10.22054/qjma.2021.52938.2159
نوروزی، محمد؛ آذین فر، کاوه؛ عباسی، ابراهیم و داداشی، ایمان (1399). طراحی مدل و ارزیابی نقش تعدیلی توانایی مدیریت بر رابطۀ بین خوانایی گزارشگری مالی و هزینۀ نمایندگی. نشریه پژوهش های حسابداری مالی, 12(1)، 1-18. doi: 10.22108/FAR.2019.116175.1433
Ahmadi louyeh, A., Nikoomaram, H., & Banimahd, B. (2021). The Right of Auditor's Choice and Tax Avoidance Based on Glaser's Choice Theory. Journal of Management Accounting and Auditing Knowledge, 10(38), 1-16. https://www.jmaak.ir/article_17543.html [In Persian]
Atefi, M.,Barzegar, E. (2017). Relationship between Money Ethics & Ethical Perception of Accounting Students with Understanding the Questionable Actions. Ethics in Science and Technology, 12(2), 117-126. http://ethicsjournal.ir/article-1-618-fa.html [In Persian]
Azizkhani, M., Imani Barandagh, M., & Mardani, H. (2015). The Impact of XBRL on Auditing: A Treat of Challenge or Opportunity. Empirical Research in Accounting, 5(1), 23-37. doi: 10.22051/jera.2015.2001 [In Persian]
Balakrishnan, K., Blouin, J. L., & Guay, W. R. (2019). Tax aggressiveness and corporate transparency. The Accounting Review, 94(1), 45-69. doi: 10.2308/accr-52130
Birt, J. L., Muthusamy, K., & Bir, P. (2017). XBRL and the qualitative characteristics of useful financial information. Accounting Research Journal, 30(01), 107-126. doi: 10.1108/ARJ-11-2014-0105
Charitou, A., Floropoulos, N., Karamanou, I., & Loizides, G. (2018). Non-GAAP earnings disclosures on the face of the income statement by UK firms: the effect on market liquidity. The International Journal of Accounting, 53(3), 183-202. doi: 10.1016/j.intacc.2018.07.003
Chen, J. Z., Hong, H. A., Kim, J. B., & Ryou, J. W. (2021). Information processing costs and corporate tax avoidance: Evidence from the SEC’s XBRL mandate. Journal of Accounting and Public Policy, 40(2), 106822. doi:10.1016/j.jaccpubpol.2021.106822
Chong, D., Shi, H., Fu, L., Ji, H., & Yan, G. (2017). The impact of XBRL on information asymmetry: evidence from loan contracting. Journal of Management Analytics, 4(2), 145-158. doi: 10.1080/23270012.2017.1299047
Cormier, D., Gutierrez, L. G., & Magnan, M. (2020). Market enforcement under different legal regimes: a comparison of France and Canada. Journal of Management and Governance, 24, 37-61. doi: 10.1007/s10997-019-09464-2
Darogheh Hazrati, F., Taftiyan, A., & Moeinadin, M. (2021). An exploration of factors affecting content elements of the web-based integrated reporting with a corporate citizen approach. Management Accounting, 14(50), 83-100. doi: 10.30495/jma.2021.19290 [In Persian]
Doolin, B., & Troshani, I. (2007). Organizational adoption of XBRL. Electronic Markets, 17(3), 199-209. doi: 10.1080/10196780701503195
Du, H., & Wu, K. (2018). XBRL mandate and timeliness of financial reporting: do XBRL filings take longer?. Journal of Emerging Technologies in Accounting, 15(1), 57-75.doi:10.2308/jeta-52094
Fakhari, H,. & Tahmasebi Khorne, S,. (2017). An Investigation of the Correlation between Tax Avoidance and Disclosure Quality in the Listed Companies of Tehran Stock Exchange (TSE) by the Simultaneous Equation Method (3SLS). Journal of Tax Research, 24(32), 125-144. http://taxjournal.ir/article-1-1041-fa.html [In Persian]
Gnangnon, S. K. (2020). Internet and tax reform in developing countries. Information Economics and Policy, 51, 100850. doi: 10.1016 /j.infoecopol. 2020. 100850
Goh, B. W., Lee, J., Lim, C. Y., & Shevlin, T. (2016). The effect of corporate tax avoidance on the cost of equity. The Accounting Review, 91(6), 1647-1670. doi: 10.2308/accr-51432
Hesari, J., & Saeidi, H. (2020). Investigating The Relationship between XBRL Voluntary Disclosure and Stock Market Valuation and The Role of Corporate Governance of listed companies in Tehran Stock Exchange (TSE). Advances in Finance and Investment, 1(1), 54-37. doi: 10.30495/afi.2021.1921144.1008 [In Persian]
Hoitash, R., & Hoitash, U. (2018). Measuring accounting reporting complexity with XBRL. The Accounting Review, 93(1), 259-287. 10.2308/accr-51762
Janvrin, D. J., & No, W. G. (2012). XBRL implementation: A field investigation to identify research opportunities. Journal of Information Systems, 26(1), 169-197. doi: 10.2308/isys-10252
Johnston, J. (2020). Extended XBRL tags and financial analysts' forecast error and dispersion. Journal of Information Systems, 34(3), 105-131. doi: 10.2308/ISYS-16-013
Kim, J. B., Li, B., & Liu, Z. (2019). Information‐processing costs and breadth of ownership. Contemporary Accounting Research, 36(4), 2408-2436. doi: 10.1111/1911-3846.12451
Li, S., & Nwaeze, E. T. (2018). Impact of extensions in XBRL disclosure on analysts' forecast behavior. Accounting Horizons, 32(2), 57-79. doi: 10.2308/acch-52034
Liu, C., Luo, X. R., & Wang, F. L. (2017). An empirical investigation on the impact of XBRL adoption on information asymmetry: Evidence from Europe. Decision Support Systems, 93, 42-50. doi: 10.1016 /j.dss. 2016.09.004
Makvandi, S., Banitalebi Dehkordi, B., & Jaafari, H. R. (2024). A model for measuring the performance of web financial reporting. Journal of Modern Management Engineering, 9(4), 52-78. doi: 10.30495/jmemiau.2024.708482 [In Persian]
Makvandi, S., Banitalebi Dehkordi, B., & Jafari, H. R. (2023). The effect of implementing web-based financial reporting model on earnings management emphasizing the moderating role of agency costs. Journal of Development and Capital, 8(2), 113-129. doi: 10.22103/jdc.2022.19955.1279 [In Persian]
Mastaneh, A., & Pakmaram, A., (2016). The Role of Organizational Shareholders in Relationship between Disclose Quality and Tax. Journal of Tax Research, 24(31), 145-174. http://taxjournal.ir/article-1-985-fa.html. [In Persian]
Mohammadzadeh Salteh, H., Azadi, M., (2017). The impact of factors related to the confidentiality costs on the quality of financial reporting with an emphasis on tax avoidance. Journal of Tax Research, 25(35), 180-201. http://taxjournal.ir/article-1-922-fa.html. [In Persian]
Mousa, R. (2016). The evolution of electronic filing process at the UK's HM Revenue and Customs: The case of XBRL adoption. eJournal of Tax Research, 14(1), 206-234.
Nazemi Ardakani, M., aref manesh, Z., & Dehghan Dehnavi, S. (2019). Internet Financial Reporting and Firm Value. Empirical Research in Accounting, 9(2), 323-350. doi: 10.22051/jera.2018.18280.1877 [In Persian]
Nobakht, M., & Nobakht, Y. (2020). The impact of tax avoidance on accounting criteria of firm value: free cash flow to the firm and free cash flow from the business. Empirical Studies in Financial Accounting, 17(68), 97-119. doi: 10.22054/qjma.2021.52938.2159. [In Persian]
Norouzi, M., Azinfar, K., Abbasi, E., & Dadashi, I. (2020). Modeling the Moderating Role of Management Ability in the Relationship between Financial Reporting Readability and Agency Cost. Financial Accounting Research, 12(1), 1-18.1-18. doi: 10.22108/far.2019.116175.1433 [In Persian]
Qin, J., Lin, J., & Xin, Y. (2023). Corporate tax avoidance: The impact of performance above aspiration and CEO experience. Asia Pacific Journal of Management, 1-31. doi: 10.1007/s10490-023-09912-6
Rahimi Kakolaki M, Banitalebi Dehkordi B, & Peikfalak J. (2017). Effective Factors on Performing Professional Ethics by Accounts. Ethics in science and Technology, 12(1), 75-87. https://ethicsjournal.ir/article-1-537-fa.html
Rahnamay Roodposhti, F., Dianati Deilami, Z., & Fakhari, F. S. (2018). Cash Effective Tax Rate as a Criterion of Tax avoidance or Earnings Management. Empirical Research in Accounting, 7(4), 93-116. doi: 10.22051/jera.2017.2802. [In Persian]
Rixen, T. (2011) Tax Competition and Inequality: The Case for Global Tax Governance. Global governance, 4(17), 447-467.
Samarghandi, H., Askarany, D., & Dehkordi, B. B. (2023). A Hybrid Method to Predict Human Action Actors in Accounting Information System. Journal of Risk and Financial Management, 16(1), 37. doi: 10.3390/jrfm16010037
Saragih, A. H., & Ali, S. (2022). The effect of XBRL adoption on corporate tax avoidance: empirical evidence from an emerging country. Journal of Financial Reporting and Accounting. doi:10.1108/JFRA-09-2021-0281
Sassi, W., Othman, H. B., & Hussainey, K. (2021). The impact of mandatory adoption of XBRL on firm’s stock liquidity: a cross-country study. Journal of Financial Reporting and Accounting, 19(2), 299-324. doi: 10.1108/JFRA-07-2020-0207
Shan, Y. G., & Troshani, I. (2021). Digital corporate reporting and value relevance: evidence from the US and Japan. International Journal of Managerial Finance, 17(2), 256-281. doi: 10.1108/IJMF-01-2020-0018
Talebnia, G., & Dehkordi, B. B. (2012). Study of relation between effectiveness audit and management audit. GSTF Business Review (GBR), 2(1), 92. doi: 10.5176/2010-4804_2.3.224
Vasarhelyi, M. A., Chan, D. Y., & Krahel, J. P. (2012). Consequences of XBRL standardization on financial statement data. Journal of Information Systems, 26(1), 155-167. doi: 10.2308/isys-10258
Walton, S., Yang, L., & Zhang, Y. (2021). XBRL tag extensions and tax accrual quality. Journal of Information Systems, 35(2), 91-114. doi: 10.2308/ISYS-19-054
Wen, W., Cui, H., & Ke, Y. (2020). Directors with foreign experience and corporate tax avoidance. Journal of Corporate Finance, 62, 101624. doi: 10.1016/j.jcorpfin.2020.101624
Yoon, H., Zo, H., & Ciganek, A. P. (2011). Does XBRL adoption reduce information asymmetry?. Journal of Business Research, 64(2), 157-163. doi: 10.1016/j.jbusres.2010.01.008