Tax avoidance: Social responsibility and the Moderator role of family Ownership

Abstract

AbstractPurpose : The purpose of this study is to investigate the effect of social responsibility and family ownership on tax avoidance according to the framework of agency theory and stakeholder theory. It also examines the role of family ownership in the relationship between social responsibility and tax avoidanceMethods: In order to test the research hypotheses, 75 companies listed on the Tehran Stock Exchange during the years 1390 to 1398 were examined. To test the research hypotheses, multivariate regression with a combined data model was used.Results: Consistent with the stakeholder theory, the results show that corporate social responsibility has a negative and significant relationship with tax avoidance. Nor does family ownership regulate the relationship between social responsibility and tax avoidance.Results: Consistent with the stakeholder theory, the results show that corporate social responsibility has a negative and significant relationship with tax avoidance. Nor does family ownership regulate the relationship between social responsibility and tax avoidance.Conclusion: The existence of corporate social responsibility reduced tax avoidance in the companies under study. Family ownership was an overlap with social responsibility, but its interaction with social responsibility did not strengthen the link between social responsibility and tax avoidance.Contribution: The use of the family property moderator variable in the analysis will enrich the research literature and deeper study of the relationship between social responsibility and tax avoidance. Also, due to the existence of competing currents, the results of this study can clarify how and the direction of this relationship.Keywords: Tax Avoidance, Social Responsibility, Family Ownership, Agency Theory, Stakeholder Theory