The Study of the Relationship between Firm's FinancialPolicies and its Profit Stability

The objective of this research is to study the relationship between firm’s profit stability and its tax policies. The statistical population includes 130 firms selected from the accepted firms in Tehran stock exchange for the time period of 1386-1390. The Simple Linear Regression and logistic Models were used for testing hypotheses. The firm’s tax policies were studied through identifying the difference between the declared and the assessed tax. The results have indicated that the more the difference، the less the firm’s profit stability. Furthermore there is no robust evidence that there is significant relationship between firm’s profit stability and the importance of tax subject and its inclusion in an independent audit report. There is also no significant relationship between variation coefficient and firm size as control variables and tax policies.