Operational and Performance Research in Accounting and Auditing

Operational and Performance Research in Accounting and Auditing

An investigation of the interaction relationship between Information asymmetry and Earning management in the listed companies of (TSE ) by the simultaneous equation method ( 3SLS)

Document Type : Original Article

Authors
Esfandiar Malekian kale Basti 1
saeid tahmasebi khorneh 2
mohsen hasan nataj kordi 3
1 1. Prof. Accounting, Faculty of Economics and Management, Mazandaran University, Babolsar, Iran.
2 mazandaran university
3 Ph.D. Student, Accounting University of Mazandaran
Abstract
Tax avoidance is said to be the intertwined and complex processes of corporate within the laws and regulations to reduce the taxes paid to the government.Tax avoidance could affect the company's Information asymmetry and the company's Information asymmetry can also affect the corporate tax avoidance. Accordingly explain the relationship between these behaviors and the relationship between the two can be substantial. Therefore, in this study the relationship between tax avoidance and Information asymmetry is evaluated. For this purpose, a sample of 104 listed companies on the Stock Exchange during the period 2010- 2014 (520 years) were selected using a system of simultaneous equations (3SLS) has studied the interaction between them. In this study, we calculated the tax avoidance of by the using of the difference between accounting profit and taxable profitand also Information asymmetry is determined by the using of bid and ask spread The results show that the between tax avoidance and Information asymmetry is positive interaction relationship. These findings can be helpful for Investors, tax policy makers andcorporate managers in order to explain the relationship between tax avoidance and financial performance.
Keywords
Tax avoidance
Information asymmetry
Simultaneous Equation