This paper examines the relationship between tax avoidance and investment inefficiency. Tax avoidance can bring returns for the company that come from the savings resulting from tax savings. Tax avoidance leads to a net increase in cash flow and profit after tax deduction. On the one hand, cash savings resulting from the activities of tax avoidance may increase the investment, but on the other hand , it leads to less investment in order to avoid double taxation. The study was conducted during 2009 to 2016 and the selected sample included 88 companies. Line regression was used for testing of research hypothesis .The results of testing the first hypothesis and the second hypothesis showed a significant negative relationship between tax avoidance with investment inefficiency and tax avoidance with overinvestment. Due to the negative nature of the relationship, increased tax avoidance results in reduction of investment diversion and a reduction in overinvestment.
minab,M. and matinfard,M. (2018). The investigation of the relationship between tax avoidance and investment inefficiency. Operational and Performance Research in Accounting and Auditing, 2(1), 159-179.
MLA
minab,M. , and matinfard,M. . "The investigation of the relationship between tax avoidance and investment inefficiency", Operational and Performance Research in Accounting and Auditing, 2, 1, 2018, 159-179.
HARVARD
minab M., matinfard M. (2018). 'The investigation of the relationship between tax avoidance and investment inefficiency', Operational and Performance Research in Accounting and Auditing, 2(1), pp. 159-179.
CHICAGO
M. minab and M. matinfard, "The investigation of the relationship between tax avoidance and investment inefficiency," Operational and Performance Research in Accounting and Auditing, 2 1 (2018): 159-179,
VANCOUVER
minab M., matinfard M. The investigation of the relationship between tax avoidance and investment inefficiency. Oper. Perform. Res. Acc. Audit., 2018; 2(1): 159-179.
