Russian Federation
Russian Federation
The overconfident general managers use their position and influence in their companies to reach their personal ambitions that can be followed by invasive tax policies, lower tax payments and showcasing of the higher incomes in relation to the general manager’s reward. In between, the audit committees have been designed so as to act independently and resolve the conflicts between the internal and external managers regarding the financial information and the selection of the accounting methods. Thus, the present study aims at investigating the effect of the audit committee on the relationship between the mangers’ overconfidence and tax avoidance in the companies accepted to Tehran’s securities exchange market for the years between 2015 and 2020. The present study is an applied research in terms of the study objectives and it is a correlation-descriptive research in terms of the method. In order to investigate the study subject, multivariate linear regression was used for data analyses. Then, Eviews Software package was utilized to perform the statistical analyses of the obtained information. The results indicated that managers’ overconfidence is significantly correlated with tax avoidance and that the relationship is direct meaning that the increase in the managers’ overconfidence causes an increase in the company’s tax avoidance, as well. Moreover, it was found out in the other study’s findings that the audit committee (financial expertise of the audit committee) exerts a significant effect on the relationship between the managers’ overconfidence and company’s tax avoidance and that the effect is reverse.
managers’ overconfidence, tax avoidance, audit committee, securities’ exchange market
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