Journal of Strategic Management Advances

Journal of Strategic Management Advances

Investigating the relationship between tax avoidance and business strategic financial assets with the moderating role of management myopia

Document Type : Original Article

Authors
Ameneh Bazrafshan 1
Zahraalsadat Mirhoseini 2
1 Associate Professor, Imam Reza International University
2 MSc on Auditing, Imamreza International University, Mashhad, Iran
10.22034/jsma.2024.482638.1018
Abstract
The purpose of the current research is to investigate the relationship between tax avoidance and strategic financial assets of business and also to investigate the influence of management myopia on the said relationship. In this regard, the information of 190 companies admitted to the Tehran Stock Exchange during the period from 2013 to 2022 has been collected. This research is applied in terms of purpose and descriptive-correlation in terms of method. To test the hypotheses, multivariable regression model and R statistical software were used. The results show that there is a positive and meaningful relationship between tax avoidance activity and business strategic financial assets, and the myopia of managers strengthens the positive relationship between tax avoidance and financial assets. This study shows that corporate tax avoidance has a significant positive effect on corporate financing. Also, the positive relationship between corporate tax avoidance and corporate financing is more pronounced in companies whose managers are more myopic. This result suggests that managerial myopia is the key mechanism that links corporate tax avoidance and corporate financialization.
Keywords
tax avoidance
business strategic financial assets
management myopia
Journal of Strategic Management Advances
Volume 1, Issue 3
Summer 2024