M.A. Thesis:

Management bonuses and tax avoidance

In traditional view, tax avoidance supposed to be an activity of maximizing value that transfers the wealth from government to company's shareholders. However, one important feature of corporate and modern companies is separation of ownership from management. Within the framework of agency theory, recent researches argue that tax avoidance activities can give the possibility of opportunistic behavior to management (Mashayekhi and Ali Panah, 1394). In this study, the effective tax rate criteria and tax office difference were used to measure tax avoidance. In present study we are going to examine the relationship between tax avoidance and reward of board of directors. Multiple regression models are used in order to test the hypothesis of research, and mixed data (panel data) are used in order to regression models. The study period covers the years 1389 to 1393. The sample includes 108 companies. Based on the test results can be said there is no significant relationship between reward of board of directors and the effective tax rate at the level of 5% error. Also there is no significant and direct relationship between reward of board of directors and tax office difference.

Keywords: reward of board of directors, effective tax rate, tax office difference, company size, return on as