Empirical Analysis of the Role of Professional Accountants in Enhancing Financial Information Process Efficiency and Tax Collection Effectiveness with Emphasis on the Financial Management System of Iranian Firms
Abstract
Efficient tax systems and transparent financial information processes are fundamental pillars of fiscal governance in emerging economies. Recent developments in digital tax administration and enhanced disclosure requirements have amplified the role of professional accountants in ensuring financial reporting quality and strengthening tax discipline. However, limited empirical evidence exists on the integrated relationship between financial information process efficiency, firms’ financial management systems, and tax collection effectiveness in emerging markets. This study aims to empirically examine the role of professional accountants in improving the efficiency of financial information processes and its impact on tax collection effectiveness among Iranian firms. The sample consists of companies listed on the Tehran Stock Exchange over the period 2019–2023. Financial data were obtained from audited financial statements and official reports. Financial information process efficiency was measured using financial reporting quality indicators, discretionary accruals, and reporting timeliness. Tax collection effectiveness was proxied by the effective tax rate and book-tax differences. Panel data regression models were employed to estimate the relationships. The findings indicate that the presence of highly qualified professional accountants and structured financial management systems significantly enhance the efficiency of financial information processes. Furthermore, improved information efficiency is associated with lower tax aggressiveness and higher tax compliance. The indirect effect of professional accountants on tax effectiveness through information quality is both statistically and economically significant. This study provides an integrated empirical framework and offers policy implications for strengthening financial governance and reducing the tax gap by reinforcing the professional role of accountants within firms’ financial management structures.
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