Investigating the Long-Term Effects of Tax Collection and Economic Policy Uncertainty on Taxpayer's Defensive Behaviors with the PMG Approach: a Case Study of Selected Tehran Stock Exchange companies

Document Type : Original Article

Authors

1 PhD Student in Economics, Dept. of Economic, Faculty of Social Sciences, Economics and Entrepreneurship, Razi University, Kermanshah, Iran.

2 Professor of Economics, Dept. of Economic, Faculty of Economics and Accounting, Razi University, Kermanshah, Iran.

3 Associate Professor of Economics, Dept. of Economic, Faculty of Social Sciences, Economics and Entrepreneurship, Razi University, Kermanshah, Iran.

Abstract

Uncertainty about economic policies has negative effects on the performance of macroeconomic variables as well as uncertainty in many other investment behaviors. Examining the factors affecting the tax burden, including the uncertainty of economic activities, has a wide range of transient policy implications in this area. Due to this issue, the purpose of this study was to investigate the effect of tax collection on the relationship between uncertainty of economic policies and corporate tax burden during the period 2012-2020 in selected companies of Tehran Stock Exchange with the ARDL panel (PMG) approach. The results of this study showed that tax collection reduces the relationship between inflation uncertainty and corporate tax burden. The coefficient of the error correction model was also significant at the level of 95% confidence. Other results of this study showed that the ECM coefficient was around -0.265, which indicates that if a shock is applied to the dependent variable, it will take about 3 to 4 periods for this variable to return to its long-term trend.

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History

  • Receive Date: 01 December 2022
  • Revise Date: 03 January 2023
  • Accept Date: 09 January 2023

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