Spiritual and emotional intelligences, financial performance, tax avoidance and corporate disclosure quality in Iran

Abstract

Purpose The purpose of the current study is to examine the effects of spiritual and emotional intelligences of managers in manufacturing industries on the ambiguous activities of tax avoidance and corporate disclosure quality. Design/methodology/approach Managers of 178 manufacturing companies have undergone a test regarding spiritual intelligence and emotional intelligence, of which 119 responded to the online questionnaire. Information on these two psychometric items was collected through King–Baron standard questionnaire, and quantitative data on tax avoidance, disclosure quality and performance were collected through the Rahavard Novin application, financial statements and Stock Exchange website. Obtained data were analyzed using factor analysis and structural equation modeling. Findings The results show that a relationship exists between the level of intellectual skills of managers (spiritual intelligence and emotional intelligence) and tax avoidance activities. Originality/value The current study is almost the first study in developing countries which focuses on the subject of the study.