CORPORATE GOVERNANCE AND TAX AGGRESSIVENESS IN NON-FINANCIAL QUOTED FIRMS IN NIGERIA
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 3000
ABSTRACT
Corporate tax aggressiveness is an ongoing practice in several corporations both in Nigeria and globally. The unsettled area in the literature is the debate regarding what the determinants of tax aggressiveness are and what factors precipitate the practice of tax aggressiveness by quoted companies in Nigeria. The aim of the study is to examine the impact of corporate governance on tax aggressiveness in listed nonfinancial firms in Nigeria. The specific objectives were to examine the effect of board independence, board size, board gender diversity, board Ownership, CEO age, CEO tenure and CEO ownership on tax aggressiveness. Secondary data gotten from annual reports and accounts of the sampled companies in Nigeria from 2005-2009 were used. A sample size of 80 non-financial firms purposively selected was used for the study. The longitudinal research design was used in the study. Panel and threshold regression were used for the analysis. The findings of the study revealed that an increase in the number of independent directors on the board results in an increase in tax aggressive practices. An increase in the board size resulted in an increase in tax aggressiveness. Also, an increase in the board gender diversity implies less tax aggressiveness activity, though, the outcome is not significant at 5%. An increase in the level of board equity ownership resulted in an increase in tax aggressive practices. The presence of older CEO’s resulted in less tax aggressiveness activity. CEO tenure has a negative impact though not significant at 5%. Finally, an increase in CEO ownership results in an increase in tax aggressiveness. The study concludes that corporate governance is instrumental in influencing tax aggressiveness in quoted companies in Nigeria. Hence, variables like the board independence, board size, boar gender diversity ownership structure and CEO characteristics can define the extent to which firms become tax aggressive. Based on this study, the following are the recommendations for corporate governance in non-financial firms. First, that increasing the number of independent directors is not sufficient to curtail tax aggressiveness. This may be so especially when aggressive tax strategies represent a firm's value maximizing activity. There will be the need to rely largely on the role of external auditors. Second, there is the need for boards to include representatives of tax authorities who will protect the interest of the tax authorities. The study contributes to knowledge by shedding light on the extent to which firm level governance can impact on tax aggressiveness.
Related Project Materials
THE EFFECTS OF EARLY CHILDHOOD EDUCATION ON RESOLVING CONFLICT AND NEGOTIATION SKILLS
ABSTRACT: This study examined the Effects of Early Childhood Education on Resolving Conflict and Negotiation...
AN ASSESSMENT OF THE EFFECT OF AGE ON THE ACADEMIC PERFORMANCE STUDENTS IN SECONDARY SCHOOL
Background Of The Study
Academic performance is a composite term that refers to both pupils' abilit...
CAUSES AND EFFECTS OF MALNUTRITION IN CHILDREN IN OVIA NORTH EAST LOCAL GOVERNMENT AREA OF EDO STATE
ABSTRACT
The study investigated the causes and effects of malnutrition in children in Ovia North East L...
GOVERNMENT EXPENDITURE AND ECONOMIC GROWTH IN NIGERIA: A DISAGGREGATED ANALYSIS
BACKGROUND OF THE STUDY
The relationship between government expenditure and economic growth has continu...
ASSESSMENT OF FOOD SECURITY AND POVERTY STATUS OF CEREAL CROP FARMERS UNDER FADAMA III+ ADDITIONAL FINANCING (AF) IN NIGER STATE, NIGERIA
ABSTRACT
Food security and poverty among farming households have become an issue of great concern to policy makers and stakeholders in th...
INFLUENCE OF SCHOOL SUPERVISION ON THE IMPLEMENTATION OF COMMERCE CURRICULUM IN SENIOR SECONDARY SCHOOLS IN NIGER STATE, NIGERIA
ABSTRACT
This study investigated the influence of school supervision on the implementation of commerce curriculum in Senior Secondary Sch...
ICT AND ACADEMIC PERFORMANCE OF PRIVATE PRIMARY SCHOOL PUPILS
Background of the Study
Increasing the level of education offered in educational institutions is a primary focus for the...
MODELLING GROUNDWATER RECHARGE ESTIMATION USING MODIFIED SOIL MOISTURE BALANCE APPROACH IN OTUKPO BASIN
ABSTRACT
In this study, groundwater recharge in Otukpo basin has been estimated using a modified daily soil moisture balance based on a s...
THE ROLE OF FUND ACCOUNTANTS IN ASSET MANAGEMENT
Abstract: THE ROLE OF FUND ACCOUNTANTS IN ASSET MANAGEMENT
The objectives of this study are to: (1) evaluate the critical functions of fu...
THE CONTRIBUTION OF BANK OF INDUSTRY (BOI) TO INDUSTRIAL DEVELOPMENT IN NIGERIA (1980-2010)
BACKGROUND OF THE STUDY
Industrial financing organizations have undergone a structural transformation during the last three decades in mo...
