Analysis of the impact of executive directors on the tax level of the companies listed in Tehran Stock Exchange

Abstract

In this research the relationship between executive directors and the difference between declared tax and absolute tax is studied. This evaluation is done by the relationship between executive management including three criteria of the percentage of non-official people among board of directors, dual role of the chairman and his lack of influence, with the amount of declared tax and absolute tax. Therefore, the information of 30 companies listed in Tehran Stock Exchange during 2006 and 2011 were used. By creating a linear Semi-logarithmic function and its estimation was determined in form of panel data. Variables of the proportion of non-official directors to the official ones (BM), differentiating chairman of board from CEO (SEP) and influence of CEO (INF) is significant statistically. Thus, the main purpose of this research is to explain the relationship between the indicators of executive management with the percentage of the difference between declared tax and absolute tax in companies listed in Tehran Stock Exchange.