Journal of Management and Business Solutions 3092-7226 2 Serial Number 7 2024 06 30 Investigating the Impact of Tax Law Complexity on Financial Reporting Quality and Managerial Decision-Making Investigating the Impact of Tax Law Complexity on Financial Reporting Quality and Managerial Decision-Making 1 15 EN Journal Article 2024 02 14 <p>This study investigates the impact of tax law complexity on financial reporting quality and managers’ investment decision-making in companies listed on the Tehran Stock Exchange during the 2015–2023 period. The primary objective is to identify the dual relationship between these complexities and the financial and behavioral performance of managers. The study is descriptive-correlational in nature and is based on annual panel data. The sample consists of companies listed on the stock exchange, excluding firms operating in the financial sector. Financial reporting quality was measured using the Modified Jones Accrual Model, while investment efficiency was assessed based on the deviation of actual investment from the optimal investment level. Data analysis was conducted using multivariate regression models with fixed effects and various diagnostic tests. The results indicate that tax law complexity reduces financial reporting quality through an increase in discretionary accruals. Simultaneously, however, it is associated with improved efficiency in managers’ investment decision-making. These dual findings highlight the importance of optimally managing tax complexities. Tax law complexity is a multidimensional influential factor that should be considered with balance in both policymaking and corporate management. Such an approach can preserve the transparency of financial information while also creating opportunities to improve investment decisions.</p> https://www.journalmbs.com/index.php/jmbs/article/download/314/232