Studying the role of Value-Added Tax (VAT) and its impact on the Country Tax Revenues and Inflation (with an Emphasis on Financial Approach) in Companies Listed in the Tehran Stock Exchange

Keshavarz, Abdolmajid; Armin, Afshin

Document Type : Original Article

Authors

Abdolmajid Keshavarz ¹
Afshin Armin ²

¹ M.sc., Accounting, Department of Accounting, Bandar Abbas Branch, Islamic Azad University, Bandar Abbas, Iran

² Department of Accounting, Bandar Abbas Branch, Islamic Azad University, Bandar Abbas, Iran

Abstract

This study aimed to investigate the role of VAT and its impact on Iran′s tax revenues and the rate of inflation (with an emphasis on financial approach) in listed companies on the Stock Exchange of Tehran. For this, a total of 600 manufacturing firms listed in Stock Exchange in the period of 2009 till 2014 were selected and their data were analyzes using multiple linear regressions and trough panel data using fixed effects. The results of research hypothesis testing showed, that there is a significant relationship between the research variables and increase or decrease the growth rate of value added tax have a significant impact on tax revenues and inflation volatility and R & D expenditure of the companies.

Keywords

References

Alexander, R., Mazza, S., Scholz, S. (2009). Measuring rates of return for lobbying expenditures: an empirical analysis under the American Jobs Creation Act. Journal of Law and Politics 25 (4), 401–457.

Bhattacharya, U., Daouk, H., Welker, M. (2003). The world price of earnings opacity. The Accounting Review 78 (3), 641–678.

Bikki Jaggi ، Sidney l. (2007) " impaet of family dominance on monitoring of earnings management by audit committees : Evidence from Hong kong "، Journal of International Accounting Auditing Taxation ، 16، 27- 50.

Che Haat, M.H., Rahman, R.A., Mahenthiran, S., Hamid, A. (2008). Corporate governance, transparency and performance of Malaysian companies. Managerial Auditing Journal 23, 744–778.

Dechow, P.M., Dichev, I.D. (2002). The quality of accruals and earnings: the role of accrual estimation errors. Accounting Review 77, 35–59.

Dhaliwal, D., Gleason, C., Mills, L. (2004). Last chance earnings management: using the tax expense to achieve earnings targets. Contemporary Accounting Research 21 (2), 431–459. Desai, M., Dharmapala, D., 2006. Corporate tax avoidance and high-powered incentives. Journal of Financial Economics 79, 145–179.

Frank, M., Rego, S.O. (2006). Do Managers Use the Valuation Allowance Account to Manage Earnings Around Certain Earnings Targets? University of Virginia, Darden Business School Working Paper No.: 03-09.

Gul, F.A. (2006). Auditors response to political connections and cronyism in Malaysia. Journal of Accounting Research 44 (5), 931–963.

Hasnan, S., Rahman, R.A., Mahenthiran, S. (2013). Management motive, weak governance, earnings management, and fraudulent financial reporting: Malaysian evidence. Journal of International Accounting Research 12 (1), 1–27.

Jones, J., Krishnan, G.V., Melendrez, K. (2006). Do Models of Discretionary Accruals Detect Actual Cases of Fraudulent and Restated Earnings? An Empirical Evaluation. Paper University of Chicago.

Kasipillai, J., Aripin., N., Amran., N.A. (2003). Influence of education on tax avoidance and tax evasion. eJournal of Tax Research 1 (2), 134–146.

Kothari, S.P., Leone, A.J., Wasley, C.E. (2005). Performance matched discretionary accrual measures. Journal of Accounting and Economics 39, 163–197.

McNichols, M.F., 2002. Discussion of ‘‘The quality of accruals and earnings: the role of accrual estimation errors’’. Accounting Review 77, 135–159.

Mills, L., Newberry, K. (2001). The influence of tax and non-tax costs on book-tax reporting differences: public and private firms. Journal of the American Taxation Association 23 (1), 1–19.

Minnick, K., Noga, T. (2010). Do corporate governance characteristics influence tax management? Journal of Corporate Finance 16, 703–718.

Noor, R., Mastuki, N.A. (2008). Corporate effective tax rates: a study of Malaysian public listed companies. Malaysian Accounting Review 7 (1), 1–20.

Phillips, J., Pincus, M., Rego, S. (2003a). Earnings management: new evidence based on deferred tax expense. The Accounting Review 78 (2), 491–521.

Sylvia veronica، S. ، sidharta utama ،A. (2008) ، " Type of earnings management and the effect of ownership strueture , firm size , and corporate ـ governance practices :Evidence form Indonesia " ،the International journal of accounting 43 ، 1-27.

Taewoo park ، myung seok p. (2004)، " Insider sales and earnings management " ،Journal of Accounting and public policy ،23، 381-411.

Vidal, J., Draca, M., Fons-Rosen, C. (2014). Revolving door lobbyists. American Economic Review 102 (7), 3731–3748.

International Journal of Advanced Studies in Humanities and Social Science

Studying the role of Value-Added Tax (VAT) and its impact on the Country Tax Revenues and Inflation (with an Emphasis on Financial Approach) in Companies Listed in the Tehran Stock Exchange

References

References

Volume 5, Issue 1
January 2016
Pages 9-15

Studying the role of Value-Added Tax (VAT) and its impact on the Country Tax Revenues and Inflation (with an Emphasis on Financial Approach) in Companies Listed in the Tehran Stock Exchange

References

References

Volume 5, Issue 1January 2016Pages 9-15

Volume 5, Issue 1
January 2016
Pages 9-15