Examining the Relationship Between Financial Risk and Tax Avoidance: Focusing on the Moderating Role of Ownership Structure and Political Connections

Arash  Arshadi Majelan; Esmaeil Ebrahimi; Ali  Pourtabarestani

Authors

Arash Arshadi Majelan Department of Accounting, Has.C., Islamic Azad University, Hashtgerd, Iran Author https://orcid.org/0009-0005-7967-1898
Esmaeil Ebrahimi Department of Accounting, Has.C., Islamic Azad University, Hashtgerd, Iran https://orcid.org/0000-0001-9149-4170
Ali Pourtabarestani Department of Accounting, Has.C., Islamic Azad University, Hashtgerd, Iran Author https://orcid.org/0009-0005-8745-1713

Keywords:

financial risk, tax avoidance, ownership structure, political connections

Abstract

The present study examined and analyzed the relationship between financial risk and tax avoidance, with a focus on the moderating role of ownership structure and political connections. For this purpose, data from 100 companies listed on the Tehran Stock Exchange were extracted for a ten-year period, from March 2015 to March 2025; the research variables were calculated, and the required statistical tests were conducted. The present study employed a descriptive-correlational research method, with an empirical design based on an ex post facto approach. Multiple linear regression was used to test the research hypotheses. The findings indicated that there was a positive and significant relationship between financial risk and tax avoidance; ownership structure did not have a significant effect on the relationship between financial risk and tax avoidance; and political connections had a significant effect on the relationship between financial risk and tax avoidance.

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