Mahdi Salehi and Shantia Salimi
The purpose of this paper is to examine the relationship between suspicious executives and tax shelters.
Abstract
Purpose
The purpose of this paper is to examine the relationship between suspicious executives and tax shelters.
Design/methodology/approach
Sample includes the 155 companies listed on the Tehran Stock Exchange during a period of seven years, from 2008 to 2015. Data were analyzed by using logistic panel regression with R software.
Findings
The results show that there is no association between the presence of suspicious executives and tax shelters or the firm value or both of them (tax shelters and the firm value).
Originality/value
The authors also investigated the implications of the firm value on suspicious executives. These findings are crucial to the state. However, several studies with similar subjects have been conducted in different countries. The current research is the first study in Iran.
Details
Keywords
Mahdi Salehi and Shantia Salami
This study aims to investigate the impact tax shelters and cost of debt in Iran. It also aims determine methods to identify tax-aggressive policies through corporate structure and…
Abstract
Purpose
This study aims to investigate the impact tax shelters and cost of debt in Iran. It also aims determine methods to identify tax-aggressive policies through corporate structure and corporate policies, as well as various solutions to handle these issues.
Design/methodology/approach
For this purpose, the data of 155 listed companies on the Tehran Stock Exchange (TSE) during the years of 2008-2015 will be considered. The number of observations includes 1,085 companies. Data was analyzed using logistic panel regression with R software.
Findings
The results of the hypotheses show that financial leverage use is not inversely related to companies’ tax-aggressive policies. There is no direct relationship between sales and financial leverage. Overall, there is no inverse relationship between tax shelters and total debt.
Originality/value
The results extend the empirical findings of Graham and Tucker and Wilson. The authors also investigated the relationship between tax shelters and financing (total debt). These findings are crucial to the state; although several studies with similar subjects have been conducted in different countries, the current study is the first of its type in Iran.