University of Isfahan Financial Accounting Research 2322-3405 8 1 2016 05 21 The Impact of Tax Avoidance on the Relationship between Product Market Power with Returns and Stock Price Informative The Impact of Tax Avoidance on the Relationship between Product Market Power with Returns and Stock Price Informative 19 38 20613 10.22108/far.2016.20613 FA Gholamreza Kordestani Imam Khomeini International University Behnam Jahangiri Livari Qazvin Branch, Islamic Azad University Journal Article 2016 11 21 Increase unexpected fluctuation in cash flows is related to the conditions of growing competition for companies that have little market power. While companies with more market power have a higher ability to transfer cash flow negative shocks to consumers and access to smoother cash flows and therefore attract risk-averse investors. Lower risk of firms with market power; encourage them to engage in tax avoidance that can effect on the returns and stock price informative. So in this study, impact of product market power on returns and stock price informative and impact of tax avoidance on that were reviewed by regression analysis based on panel data of 86 companies listed on the Tehran Stock Exchange during the years 1383 to 1393. The results showed that product market power reduces the returns and increases the stock price informative. Also, different criteria of tax avoidance do not have a significant effect on the intensity effect of product market power on stock price informative, but in term of long term book rate, the impact of product market power on stock returns become more negative. Increase unexpected fluctuation in cash flows is related to the conditions of growing competition for companies that have little market power. While companies with more market power have a higher ability to transfer cash flow negative shocks to consumers and access to smoother cash flows and therefore attract risk-averse investors. Lower risk of firms with market power; encourage them to engage in tax avoidance that can effect on the returns and stock price informative. So in this study, impact of product market power on returns and stock price informative and impact of tax avoidance on that were reviewed by regression analysis based on panel data of 86 companies listed on the Tehran Stock Exchange during the years 1383 to 1393. The results showed that product market power reduces the returns and increases the stock price informative. Also, different criteria of tax avoidance do not have a significant effect on the intensity effect of product market power on stock price informative, but in term of long term book rate, the impact of product market power on stock returns become more negative. https://far.ui.ac.ir/article_20613_614985bbf4187de44e9bf12e369f6791.pdf