Accounting and Auditing Studies

Accounting and Auditing Studies

Investigating The Relationship between The Peer Firms Performance and Corporates Tax Avoidance operating in The Same Geographical Area

Document Type : Original Article

Authors
Mohammad Joodaki 1
Sara Ghanbari 1
Mohammad Taghi Kabiri 2
1 M.A. of Accounting, Accounting Department, Faculty of Management and Accounting, Amin Institute of Higher Education, Foladshahr, Iran
2 Assistant Prof. of Accounting, Department of Management, Faculty of Administrative and Economic Sciences, Arak University, Arak, Iran
10.22034/iaas.2025.222699
Abstract
In modern economies, taxes are the most important source of government revenue. On the other hand, considering that taxes reduce the wealth and value of companies, companies are always looking for legal loopholes to avoid paying taxes. Recently, some researchers have investigated the possibility of the relationship between the performance of peer companies active in a geographical region and the company's tax avoidance and believe that companies often follow the tax behavior of other companies in the same industry or region. According to the above, this research has investigated the relationship between the performance of peer companies and the tax avoidance of companies operating in the same geographical area. Data analysis was done using the multiple regression model and with the help of Eviews software. In this research, to investigate the first hypothesis, 31 petrochemical companies active in the chemical industry of the stock exchange, and to investigate the second hypothesis, 9 petrochemical companies active in the free economic zone of Arvand have been selected as a statistical sample, and the period of this research is during the years of 2011 It is up to 2021. The result of the first hypothesis showed that the performance of peer companies has a positive and significant relationship with the company's tax avoidance. Also, the results of the second hypothesis showed that the performance of peer companies has a positive and significant relationship with the tax avoidance of companies operating in the same geographical area.
Keywords
Tax avoidance
Firms performance
Peer Firms Performance
  1. بنابی قدیم، رحیم. (1402). "تأثیر هزینه تبلیغات بر اجتناب مالیاتی با تأکید بر نقش ابهام اطلاعاتی و تمرکز مالکیت". پیشرفت‌های حسابداری، 15 (1)، 1-29.
  2. تاجمیر ریاحی، حامد؛ اسدی، زهرا. (1400). "تأثیر آشفتگی مالی بر اجتناب از پرداخت مالیات در شرکت‌های پذیرفته شده در بورس اوراق بهادار تهران". پژوهش‌های راهبردی بودجه و مالی، 2 (4)، 73-101.
  3. خبرگذاری تابناک. (1398). صادرات صوری، راهکار جدید پتروشیمی‌ها برای فرار مالیاتی. https://www.tabnak.ir/fa/news/905354.
  4. رشیدی، محسن؛ محمدی راد، مهرشاد. (1399). "بررسی انگیزه‌های مالیاتی در شرکت‌های دارای سهامدار دولتی بر مبنای دوره تصدی مدیرعامل"، پژوهشنامه مالیات، 45 (93)، 37-57.
  5. علمی، حسام؛ محمدزاده سلاطه، حیدر. (1399). تاثیر اجتناب مالیاتی بر چسبندگی هزینه با تاکید بر استراتژی تجاری شرکت. تحقیقات حسابداری و حسابرسی، انجمن حسابداری ایران، 12 (45)، 113-132.
  6. نوبخت، یونس؛ نوبخت، مریم. (1400). "تأثیر اجتناب از پرداخت مالیات بر معیارهای حسابداری و اقتصادی عملکرد شرکت: شواهدی از بورس اوراق بهادار تهران"، فصلنامه حسابداری و منافع اجتماعی، 11 (2)، 21-42.
  7. یوسفوند، داوود؛ محمدی، محمد؛ یوسفوند، ذبیح الله. (1400). بررسی تاثیر خوانایی گزارشگری مالی بر اجتناب مالیاتی و کیفیت اقلام تعهدی. مطالعات حسابداری و حسابرسی، انجمن حسابداری ایران، 39 (1)، 111-126.
  8. Adhikari, B. K., & Agrawal, A. (2018). “Peer influence on payout policies”. Journal of Corporate Finance, 48, 615-637.
  9. Aliani, K. (2013). “Does corporate governance affect tax planning? Evidence from American companies”. International Journal of Advanced Research, 1(10), 864–873.
  10. Armstrong, C.S., Glaeser, S., & Kepler, J.D. (2019). “Strategic reactions in corporate tax planning”. Journal of Accounting and Economics, 68 (1), 101-232.
  11. Bailey, M., Cao, R., Kuchler, T., & Stroebel, J. (2018). "The economic effects of social networks: evidence from the housing market”. Journal of Political Economy, 126 (6), 2224–2276.
  12. Bird, A., Edwards, A., & Ruchti, T. G. (2018). "Taxes and peer effects". The Accounting Review, 93, 97-117.
  13. Bui, D. G., Chen, Y., Lin, C. Y., & Lin, T. C. (2019). "R&D expenditure as a response to peer influence". SSRN Electronic Journal, 39, (4), 1-50.
  14. Bradshaw, M., Liao, G., & Ma, M.S. (2019). "Agency costs and tax planning when the government is a major shareholder". Journal of Accounting and Economics, 67 (2-3), 255–277.
  15. Chevalier, J., & Ellison, G. (1999). “Career concerns of mutual fund managers”. Quarterly Journal of Economics, 114(2), 389–432.
  16. Du, Q., & Shen, R. (2018). “Peer Performance and Earnings Management”. Journal of Banking & Finance, 89 (1), 125-137.
  17. Duong, H. K., Ngo, A .D., & McGown, C.B. (2015). "Industry Peer Effect and the maturity structure of Corporate debt". Managerial Fainance, 41 (17), 714-733.
  18. Duhoon, A., & Singh, M. (2023). “Corporate tax avoidance: a systematic literature review and future research directions”. LBS Journal of Management & Research, 37, 1-22.
  19. Fairhurst, D., & Nam, Y. (2020). "Corporate governance and financial peer effects". Financial Managmant, 49 (1), 235–263.
  20. Francis, B. B., Hasan, I., & Kostova, G. L. (2016). "When do peers matter?: A cross-country perspective". Journal of International Money and Finance, 69, 364-389.
  21. Gao, Y., Cai, C., & Cai, Y. (2021). “Regional Peer Effects of Corporate Tax Avoidance”. Organizational Psychology, 7, 1-12.
  22. Grennan, J. P. (2019). "Dividend payments as a response to peer influence". Journal of Financial Economics, 131, 549-570.
  23. Huang, H., Sun, L., & Zhang, J. (2017). "Environmental Uncertainty and Tax Avoidance, in (ed.) Advances in Taxation". Emerald Publishing Limited, 24, 83 – 124.
  24. Hanlon, M., & Heitzman, S. (2010). "A review of tax research". Journal of Accounting and Economics, 50(2- 3), 127–178.
  25. Im, H. J., Oliver, B. R., & Park, Y. J. (2021). “Policy Uncertainty and Peer Effects: Evidence from Corporate Investment in China”. International Review of Financial Analysis, 77, 1-20.
  26. Jia, J., Ding, S., & Liu, Y. (2020). "Decentralization, incentives, and local tax enforcement". Journal of Urban Economics, 115, 103-125.
  27. Kaustia, M., & Rantala, V. (2015). "Social learning and corporate peer effects". Journal of Financial Economics, 117 (3), 653–669.
  28. Leary, M.T., & Roberts, M.R. (2014). "Do peer firms affect corporate financial policy., Journal of Finance, 69 (1), 139–178.
  29. Leung, S.C., Richardson, G., & Taylor, G. (2019). "The effect of the general anti-avoidance rule on corporate tax avoidance in China". Journal of Contemporary Accounting & Economics, 15 (1), 105–117.
  30. Liang, Q., Li, Q., Lu, M., & Shan, Y. (2021). “Industry and geographic peer effects on corporate tax avoidance: Evidence from China”. Pacific-Basin Finance Journal, 67, 1-25.
  31. Lieberman, M. B., & Asaba, S. (2006). "Why do firms imitate each other?". Academy of Management Review, 31, 366-385.
  32. Machokoto, M., Gyimah, D., & Ntim, C. G. (2021). "Do peer firms influence innovation?". The British Accounting Review, 52 (2), 613–644.
  33. Manski, C.F. (1993). “Identification of endogenous social effects: the reflection problem”. The Review of Economic Studies, 60 (3), 531–542.
  34. Mocanu, M., Constantin, S. B., & Răileanu, V. (2021). “Determinants of tax avoidance – evidence on profit tax-paying companies in Romania”. Economic Research-Ekonomska Istraživanja, 34 (1), 2013-2023.
  35. Putra, P., Dwi, S. D. H., & Sriwedari, S. (2018). “Tax avoidnce: Evidence of as a proof of agency theory and tax planning”. International Journal of Research and Review, 5(9), 52–60
  36. Rao, R. K., & Chakraborty, P. (2010). “Goods and services tax in India: An assessment of the base”. Economic and Political Weekly, 45(1), 49–54.
  37. Rashid, A., & Farah Said, A. (2021). "Peer Effects on Investment Decisions: Do Industry Leaders and Young Firms Behave Differently?". Global Business Review, 25, 1-21.
  38. Scharfstein, D. S. & Stein, J. C. (1990). “Herd behavior and investment”. The American Economic Review, 80(3), 465–479.
  39. Sidney, C., Leng, M., Grant, R., & Grantly, T. (2019). "The effect of the general antiavoidance rule on corporate tax avoidance in china". Journal of contemporary accounting and economic, 15, 105-117.
  40. Tang, T., Mo, P.L.L., & Chan, K.H. (2017). "Tax collector or tax avoider? An investigation of intergovernmental agency conflicts". The Accounting Review, 92 (2), 247–270.
  41. Trueman, B. (1994). “Analyst forecasts and herding behavior”. Review of Financial Studies, 7(1), 97–124.
  42. Wolk, H.I., Dodd, J., & Rozycki, J. (2013). "Accounting theory, conceptual issues in a political and economic environment". Sega publication edition, 8, 43-63.
Accounting and Auditing Studies
Volume 14, Issue 53
Spring 2025
Pages 107-126