Tax Avoidance and its Relationship with Manager Overconfidence and Audit Committee Characteristics

The purpose of this research is to examine the relationship between managers overconfidence and tax avoidance with the moderating role of audit committee characteristics. To achieve the goal of the research, first, the relationship between managers overconfidence and tax avoidance was investigated. The moderating role of audit committee characteristics on the relationship between managers overconfidence and tax avoidance was investigated. The statistical sample of this research includes 171 companies admitted to the Tehran Stock Exchange during the years 2017 to 2021. Also, to test the hypotheses of the research, multivariate regression analysis and Eviews econometric software and statistical techniques of panel data were used after measuring the research variables. The research findings indicate that there is a significant relationship between managers overconfidence and corporate tax avoidance, according to agency theory. In other words, companies with overconfident managers have more tax avoidance. Also, the results showed that the audit committee characteristics weakens the relationship between managers overconfidence and corporate tax avoidance.