Journal of
Accounting and Taxation

  • Abbreviation: J. Account. Taxation
  • Language: English
  • ISSN: 2141-6664
  • DOI: 10.5897/JAT
  • Start Year: 2009
  • Published Articles: 209

Full Length Research Paper

Beyond the balance sheet: Unraveling the impact of accounting conservatism and values on tax avoidance

Antonios Persakis
  • Antonios Persakis
  • Department of Accounting and Finance, School of Economic and Business Administration, University of Thessaly, Thessaly, Greece.
  • Google Scholar
Georgios Kolias
  • Georgios Kolias
  • Department of Accounting and Finance, Faculty of Economics and Administrative Sciences, University of Ioannina, Greece.
  • Google Scholar

  •  Received: 01 February 2024
  •  Accepted: 07 June 2024
  •  Published: 30 June 2024


This research aims to demonstrate the influence of accounting conservatism and Gray's accounting values on the practice of corporate tax avoidance. By analyzing a dataset consisting of 14,500 firms from 75 countries over the period of 2000 to 2022, and utilizing the generalized method of moments (GMM) methodology, the study demonstrates a positive correlation between accounting conservatism and elevated effective tax rates. This finding implies a decrease in tax avoidance. The study combines agency and deterrence theories with the theory of reasoned action to analyze the impact of accounting practices on corporate behavior. The findings suggest a positive relationship between professionalism and secrecy in accounting and higher levels of tax avoidance. Conversely, a negative association is observed between uniformity and conservatism in accounting and tax avoidance. This study makes a substantial contribution to the fields of accounting and finance by demonstrating the intricate relationship between accounting practices, cultural values, and tax strategies.


Key words: Tax avoidance, accounting conservatism, professionalism, uniformity, conservatism, secrecy.