The impact of corporate governance mechanisms and their social responsibilities on tax compliance within companies registered on the Iraq Stock Market

Abstract

Research on institutional ownership, the implementation of tax compliance and social responsibility initiatives can help build public trust. By providing reliable evidence and statistics about the performance of companies in these fields, public trust in companies and institutional organizations will increase, and the relationship between organizations and society will improve. In the present research, the effect of corporate governance characteristics and their social responsibilities on tax compliance in companies admitted to the Iraq Stock Exchange was investigated. The socio-statistics of this research included 104 companies, and sampling was done systematically. This research adopts a descriptive approach with a post-event(ex-post) methodology of cause-and-effect type, and Variables were analyzed using the method of multiple linear regression. To conduct the research, information was collected from 2019 to 2023. EVIEWS and Excel programs were utilized to perform data analysis and evaluate the hypotheses. “The study assumes that there is a statistically significant relationship between governance characteristics (institutional ownership) and corporate social responsibility on the one hand, and the avoidance of tax evasion on the other hand.” The research findings show that there is a significant relationship between corporate governance characteristics (institutional ownership) and corporate social responsibilities, with non-avoidance of taxes. This result shows that corporate governance characteristics and corporate social responsibility can affect tax avoidance. “The study recommends strengthening governance mechanisms and activating social responsibility programs, considering them as effective tools to reduce the phenomenon of tax evasion and to improve the relationship between companies and society