Examining the effect of financial risk on the relationship between social responsibility and financial non-compliance

Subject Areas : Financial accounting

Nashmil Esmaeili ¹ , Parviz Piri ^{2 *}

1 - Ph.D. Candidate in Accounting, Faculty of Economics and Management, Urmia University, Urmia, Iran.
2 - Associate Prof, Accounting Department, Faculty of Economics and Management, Urmia University, Urmia, Iran.

Received: 2024-08-07 Accepted : 2024-12-24 Published : 2025-01-19

Keywords: Financial risk of companies, Social Responsibility, Tax non-compliance,

Abstract :

Taxes are one of the important sources of government income, which in addition to providing the financial resources that the government needs, leads to a better distribution of income and wealth. The composition of tax revenues as well as the share of taxes from the total public revenues is different due to the economic, cultural and historical conditions in one country compared to another country. So Based on this, the aim of this research is to investigate the effect of financial risk on the relationship between social responsibility and tax non-compliance. In order to carry out this research, a sample consisting of 140 companies admitted to the Tehran Stock Exchange during the period of 2011-2014 was selected and the hypotheses were tested using multivariate regression model and GLS method. The results of the first hypothesis test show that the higher the social responsibility of the companies, considering that it considers a wider range of interests of the beneficiaries, it leads to the reduction of tax non-compliance of the companies. Also, the financial risk of companies also affects the relationship between social responsibility and tax non-compliance, in other words, the lower the financial risk of companies, and in other words, the higher the credit rating of the company, the greater the impact of social responsibility on tax non-compliance. It will move in the direction of the interests of the beneficiaries.

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