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:: Volume 12, Issue 46 (Quarterly Journal of Fiscal and Economics Policies 2024) ::
qjfep 2024, 12(46): 87-123 Back to browse issues page
The Impact of Tax Uncertainty on Financial and Strategic Policies of Companies
Dalia Eydavi , Saeed Nasiri * , Zoleikha Morsaliarzanagh , Ali Tamoradi
Department of Accounting, Islamic Azad University
Abstract:   (271 Views)
The current research aims to investigate the impact of tax uncertainty on the financial and strategic policies of companies. For this purpose, the impact of tax uncertainty on policies (including: financing policy, dividend policy, and investment policy) and strategic policies (strategic deviation) were investigated under four hypotheses. The library method was used to collect information related to the theoretical basis. To test the research hypotheses, the data from the financial statements of the companies listed on the Tehran Stock Exchange based on the information of 145 companies during the period 2015 – 2021 were used. The results showed that tax uncertainty has a significant positive effect on the financing policies of companies. Conversely, the results showed a significant negative impact of tax uncertainty on both dividend and investment policies.  Additionally, the findings indicated a significantly negative effect of tax uncertainty on strategic deviation within companies. In fact, companies facing tax uncertainty also have a greater incentive to provide cash resources through debt financing. However, due to the liquidity risk caused by tax uncertainty, such companies are more conservative in distributing cash dividends and investing in projects. Furthermore, managers in companies with higher tax uncertainty are more cautious and less prone to adopting strategies that deviate from those of their competitors.
Keywords: Tax Uncertainty, Financial Policies, Strategic Policies. Dividend Policy, Investment Policy, Strategic Deviation
Full-Text [PDF 1210 kb]   (104 Downloads)    
Type of Study: Applicable | Subject: Special
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Eydavi D, Nasiri S, Morsaliarzanagh Z, Tamoradi A. The Impact of Tax Uncertainty on Financial and Strategic Policies of Companies. qjfep 2024; 12 (46) :87-123
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Volume 12, Issue 46 (Quarterly Journal of Fiscal and Economics Policies 2024) Back to browse issues page
فصلنامه سیاستهای مالی و اقتصادی Quarterly Journal of Fiscal and Economic Policies
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