University of Isfahan Financial Accounting Research 2322-3405 11 1 2019 03 21 The Relationship between the Unreadability of Financial Reports and Tax Aggressiveness via Simultaneous Equation System The Relationship between the Unreadability of Financial Reports and Tax Aggressiveness via Simultaneous Equation System 41 54 23810 10.22108/far.2019.116545.1445 FA Zabihallah Khani Masoum Abadi Assistant Professor, Department of Accounting, Fasa Branch, Islamic Azad University, Fasa, Iran Hosein Rajabdorri Accounting Ph.D. Student and member of Young and Elite Researchers Club, Bandar Abbas Branch, Islamic Azad University, Bandar Abbas, Iran Journal Article 2019 04 19 The purpose of this study was to investigate the relationship between the readability of financial reports and tax aggressiveness via simultaneous equation system. In order to examine the readability of financial reports, the Fog Index and the Wilson Model [42] were used to examine the tax aggressiveness. This research is an applied objective and its time period is 2013 to 2017 and the selected sample consists of 119 companies accepted in Tehran Stock Exchange. To test the hypotheses of the research, simultaneous equations were used in Eviews software. The findings of the research hypothesis test show that there is a double-sided and significant correlation between these variables. The findings showed that, as financial reports become more readability, the cautious tax aggressiveness decreases. Also, with an increase in the level of tax aggressiveness, the readability of financial reports will decrease. As a result, in the interests of greater transparency and readability, and the control of tax aggressiveness, attention to these two variables by supervisory authorities and investors is essential. The purpose of this study was to investigate the relationship between the readability of financial reports and tax aggressiveness via simultaneous equation system. In order to examine the readability of financial reports, the Fog Index and the Wilson Model [42] were used to examine the tax aggressiveness. This research is an applied objective and its time period is 2013 to 2017 and the selected sample consists of 119 companies accepted in Tehran Stock Exchange. To test the hypotheses of the research, simultaneous equations were used in Eviews software. The findings of the research hypothesis test show that there is a double-sided and significant correlation between these variables. The findings showed that, as financial reports become more readability, the cautious tax aggressiveness decreases. Also, with an increase in the level of tax aggressiveness, the readability of financial reports will decrease. As a result, in the interests of greater transparency and readability, and the control of tax aggressiveness, attention to these two variables by supervisory authorities and investors is essential. https://far.ui.ac.ir/article_23810_9bc8877c2599c5fa539e37b63755b926.pdf