The Mediating Role of Earnings Management in the Relationship Between Corporate Governance and Tax Avoidance

This study investigates the mediating role of earnings management in the relationship between corporate governance and tax avoidance. Although prior literature suggests that corporate governance reduces managerial opportunism, the mechanism through which it affects tax avoidance remains unclear. This study proposes earnings management as a mediating channel. Using firm-level panel data from non-financial firms listed on the Tehran Stock Exchange during ۲۰۱۷-۲۰۲۱, and applying mediation analysis, the results indicate that corporate governance significantly reduces earnings management, which in turn decreases tax avoidance. The findings confirm both direct and indirect effects, suggesting partial mediation. This study contributes to the literature by providing a behavioral explanation of how governance mechanisms influence tax strategies and offers implications for regulators and policymakers.

کلیدواژه ها:

Corporate Governance ، Earnings Management ، Tax Avoidance ، Mediation Analysis ، Agency Theory