Study of the effect of financial constraints on the relationship between tax avoidance and the level of cash holdings

Companies with financial restrictions increase their cash inventory in response to increased cash flow fluctuations, as financial constraints have created a type of competition and conflict between current and future investment, despite the risk of future cash flows, motivating the direction of the direction of the current cash flow. Action is taken for precautionary savings. The purpose of this study is to impact the financial constraint on the relationship of tax avoidance and the level of maintenance. The statistical population of the research companies accepted in the Tehran Stock Exchange and the sample studied include 140 accepted companies from 2016 to 1399. The research method is descriptive and in terms of the connection between variables is Ali-correlational and in terms of applied purpose and in terms of event, postponement. Regression methods and panel data as well as fixed effects are used to process and test hypotheses. The results show that tax avoidance has a positive and significant relationship with the level of maintenance and the financial constraint has a positive and significant effect on the relationship between tax avoidance and the level of maintenance. According to the results of the study, it is suggested that users of financial reports should consider the possibility of tax avoidance when deciding on the basis of the information contained in the financial statements. Using tax avoidance activities in different companies can have consequences.