Tax Avoidance and Asymmetric Behavior of Costs

Tax Avoidance and Asymmetric Behavior of Costs

Blog Article

The purpose of this study is to investigate the relationship between tax avoidance and asymmetric costs (cost stickiness).Generally, shareholders expect managers to pursue their personal interests, so they attempt to reduce tax liabilities and tax avoidance, because additional benefits of reducing contingent liabilities are more than the expected additional costs.Managers essential oil blend of a company often face issues such as planning and control of the business.In the planning stage, managers need costs information to predict future costs.Since changes in future costs can be determined based on the sales revenue changes, the amount of spending and costs can be predicted based on their relations with this factor.

The results of hypothesis testing of 112 listed companies on Tehran Stock Exchange during 2006-2015 showed that tax avoidance has a positive and significant relationship with the costs changes at the time of falling sales.In addition, when there is a fluctuation in cash flow, tax avoidance has a ENHANCED COLLAGEN RELAX negative and significant relationship with costs changes.