The Impact of Corporate Social Responsibility, Behavioral Biases, and Managerial Ability on the Speed of Tax Avoidance Adjustment

Rostami, Vahab; Motazedi, Gplriz; Kargar, Hamed

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The Impact of Corporate Social Responsibility, Behavioral Biases, and Managerial Ability on the Speed of Tax Avoidance Adjustment

Vahab Rostami ^*¹

, Gplriz Motazedi²

, Hamed Kargar³

1- Associate Professor, Department of Accounting, Payame Noor University, Tehran, Iran(Corresponding Author) , Vahab.rostami@pnu.ac.ir
2- Master of Science in Accounting, Zanjan Science and Research Branch, Islamic Azad University, Zanjan, Iran motazedigolriz@gmail.com
3- Master of Science in Accounting,Department of Accounting, Payame Noor University, Tehran, Iran. hamedkargar37@gmail.com

Abstract: (83 Views)

eaching the optimal level of tax avoidance is a dynamic process, and companies do not immediately adjust to new conditions after changes in the influencing factors. This delay in achieving equilibrium gives rise to the concept of the speed of adjustment in tax avoidance. The current study aims to investigate the impact of corporate social responsibility, behavioral biases, and managerial ability on the speed of tax avoidance adjustment. The statistical population of the study is the Tehran Stock Exchange, and the period under review is from 2012 to 2024. After applying systematic exclusion criteria, 166 companies were included in the final sample. In the current research, EViews 12 and Stata 14 software, along with the Generalized Method of Moments (GMM) approach, were used to test the hypotheses. The results indicated that the speed of tax avoidance adjustment in the sample used in the study is approximately 60%, which suggests that companies actively reduce 60% of the gap created between target and actual tax avoidance annually.Furthermore, corporate social responsibility, overconfidence, Myopia and managerial ability have a positive and significant effect on the speed of tax avoidance adjustment.

Keywords: Speed of tax avoidance adjustment, behavioral biases, corporate social responsibility, managerial ability.

Type of Study: Research | Subject: Special
Received: 2025/10/19 | Accepted: 2026/03/1

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