The Effect of Audit Quality on the Relationship Between Integrated Financial Reporting and Tax Avoidance in Companies Listed on the Tehran Stock Exchange

Majid  Shoaei; Maryam Sadeghi

Authors

Majid Shoaei Master's Student, Department of Accounting, Faculty of Management and Innovation, Shahid Ashrafi Esfahani University, Isfahan, Iran Author https://orcid.org/0009-0006-3035-7993
Maryam Sadeghi Assistant Professor, Department of Accounting, Faculty of Management and Innovation, Shahid Ashrafi Esfahani University, Isfahan, Iran https://orcid.org/0009-0003-5668-1829

Keywords:

Audit quality, integrated financial reporting, tax avoidance

Abstract

The primary objective of the present study was to examine the effect of audit quality on the relationship between integrated financial reporting and tax avoidance in companies listed on the Tehran Stock Exchange. The statistical population comprised all companies listed on the Tehran Stock Exchange over a 10-year period from March 21, 2015, to March 20, 2025. In this study, the companies were selected from the statistical population using systematic elimination sampling. Based on the criteria specified for systematic elimination, 146 companies were selected as the statistical sample. Library and field methods were used to collect the required data and information. The information required to calculate the variables and estimate the research models was collected from the balance sheets, income statements, and cash flow statements of the sample companies, the accompanying notes to their financial statements, and the CODAL website. Panel-data econometric techniques were employed for data analysis using EViews software, along with descriptive and inferential statistics. Panel data are obtained by combining time-series and cross-sectional data. The results indicated an inverse relationship between integrated financial reporting and tax avoidance. Regarding the control variables, financial leverage and firm loss had positive and statistically significant effects on tax avoidance, whereas return on assets had a negative and statistically significant effect on tax avoidance. The results of the second hypothesis demonstrated that audit quality strengthens the relationship between integrated financial reporting and tax avoidance. Furthermore, regarding the control variables, financial leverage and firm loss had positive and statistically significant effects on tax avoidance, whereas return on assets had a negative and statistically significant effect on tax avoidance.

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