Investigating the relationship between environmental disclosure and tax behaviors of companies listed on the Tehran Stock Exchange

Document Type : Original Article


1 Associate Professor, Department of Accounting, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran

2 M.A. Student in Accounting, Tarbiat Modares University, Tehran, Iran


This study examines the strategic relationship between two key elements of corporate social responsibility, namely tax behavior and environmental performance. The tax provides the resources needed by the government and ostensibly reduces shareholder wealth. Corporate strategies may balance the interests of such incompatible stakeholders through compromising between corporate social responsibility elements. Thus, the purpose of this study is to investigate the relationship between disclosure of legal and voluntary environmental performance of companies and tax behavior of companies listed on the Tehran Stock Exchange. The research data collected from 110 companies listed on the Tehran Stock Exchange from 2014 to 2018. In order to analyse composite data (data panel), a regression model with fixed effect is used. In this empirical study, there is no evidence of a compromise between corporate tax evasion and disclosure of environmental legal performance. However, the positive relationship between tax avoidance and voluntary disclosure suggests that strategic compromise to occur in order to provide an acceptable level of satisfaction for various stakeholders. The results of this research are consistent with the theory of multidimensional legitimacy.


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