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
AN INVESTIGATION INTO THE METHOD USED FOR CONTROLLING CRACKS IN RESIDENTIAL BUILDINGS
Background of the study
Buildings and engineering structures in the modern world are complicated, and a...
THE IMPACT OF EDUCATIONAL EXPENDITURE ON ECONOMIC GROWTH IN NIGERIA
BACKGROUND OF THE STUDY
The Quality of education in Nigeria has been a major cause of concern for the people....
INFLUENCE OF PARENTING STYLE ON CHILDREN IN UGBOWO COMMUNITY
BACKGROUND OF THE STUDY
Parenting style is a psychological construct representing standard strategies that parents use i...
INFLUENCE OF HYGIENIC ENVIRONMENT ON THE TEACHING AND LEARNING OF PUPILS
ABSTRACT
The purpose of this study is to ascertain the knowledge and practice of basic personal hygiene among school chi...
THE ROLE OF FLEXIBLE BUDGETING IN BUSINESS OPERATIONS
THE ROLE OF FLEXIBLE BUDGETING IN BUSINESS OPERATIONS
This study aims to: (1) explore the role of flexible budgeting in...
THE CONTRIBUTIONS OF INSURANCE INDUSTRY TO GROSS DOMESTIC PRODUCT (GDP) IN NIGERIA (1985 – 2010)
ABSTRACT
This work examined the contributions of the insurance industry to the gross domestic product (GDP) in Nigeria. Data for the stud...
A SURVEY OF DATA BASE MANAGEMENT IN ENHANCING THE WORK PERFORMANCE OF OTM GRADUATES
Abstract
In this study, our focus was to carryout a critical analysis on the impact of database o...
MODELLING OF WATER QUALITY DETERIORATION IN THE DISTRIBUTION NETWORK USING MATLAB
ABSTRACT
Public water supply is distributed through water pipe network, which affects the quality of water that gets to the consumers whe...
THE IMPLEMENTATION OF PROGRESSIVISM IN NIGERIAN EDUCATION: AN ASSESSMENT
ABSTRACT
The thesis sought to assess the extent to which progressive education is implemented in Nigeria. This is essentially because whi...
ANALYSIS OF THE LEGAL REGIME FOR CONTRIBUTORY PENSION SCHEME IN NIGERIA
ABSRACT
This study appraised legal framework of contributory pension scheme CPS in Nigeria. Doctrinal method was adopted. Thus, the disse...
