The effect of financial reporting quality on Dividend’s policy Using Tax aggressiveness as mediating variable

Abstract

The aim of this study to investigate the impact of financial reporting quality on dividend policy using tax aggressiveness. Financial reporting quality is an independent variable and measured by modified johns’ model, dividend policy is a dependent variable and measured by dividend payout, and tax aggressiveness is a mediating variable and measured by effective tax rate. The sample taken concentrated mainly on 30 companies listed in EGX100 in a sample period from (2018- 2021). the hypotheses were tested by SPSS. After testing the hypotheses, we have found insignificant relationship between the financial reporting quality on dividend policy using tax aggressiveness. The limitation we faced through our paper that financial reporting quality is only measured by modified jones model, and we had a lack of data due to reducing the sample size and period, also not all the companies pay the same taxes because the provision of article 41 of the investment in the Egyptian law number (72) for the year 2017.