Corporate tax avoidance, Uncertainty of economic policy And Value of excess cash flows

Changes in the country's economic policies can change the company's economic environment. Potentially, the uncertainty about future government policies affects the tax decisions of companies. Uncertainty about the government's economic policies can affect the level of excess cash flows. Uncertainty is always associated with creating some kind of risk for the company and can affect the company's sales and change the level of cash flows entering the organization. Also, the uncertainty of the economic policy can lead to the possible change of the government's tax policies and by changing the tax laws, reduce the tax avoidance activities in the company.The purpose of the research is to examine the relationship between tax avoidance and the value of excess cash flows by examining the moderating role of economic policy uncertainty in companies listed on the Tehran Stock Exchange. The statistical population of the current research consists of 140 companies admitted to the Tehran Stock Exchange during the years 2013 to 2019 after applying the existing restrictions. Multiple linear regression model was used to test the hypotheses.The results show that there is a significant relationship between tax avoidance and the value of excess cash flows. Tax avoidance activities can increase the value of excess cash flows for companies. The findings showed that economic policy uncertainty increases the relationship between tax avoidance and the value of excess cash flows. In years when there is economic policy uncertainty, the company's tax avoidance activities are more and the value of excess cash flows is higher.