Tax Avoidance and Debt Cost: The Moderating Effect of Ownership Composition

This study investigates the relationship between tax avoidance and the cost of debt, with a specific focus on the moderating effects of ownership structure in firms listed on the Tehran Stock Exchange. Using panel data from ۱۶۴ publicly traded firms over the period ۲۰۱۷ to ۲۰۲۳, we examine whether institutional and managerial ownership influence how tax avoidance strategies affect debt financing costs. Three regression models are employed to assess the direct and interaction effects of tax avoidance, debt cost, and ownership variables. The results reveal a significant and positive association between tax avoidance and debt cost. Moreover, institutional ownership amplifies this relationship, indicating that firms with higher institutional shareholdings may experience increased debt costs when engaging in aggressive tax planning. Conversely, managerial ownership appears to mitigate this effect, suggesting that managerial alignment with firm performance may reduce the negative perceptions of tax avoidance by creditors. These findings provide important insights for corporate policymakers and investors, highlighting the complex role of ownership composition in shaping financial policy outcomes.

کلیدواژه ها:

Tax Avoidance ، Cost of Debt ، Ownership Structure ، Institutional Ownership ، Managerial Ownership ، Financial Policy ، Tehran Stock Exchange ، Corporate Governance