Corporate Governance Mechanisms and Tax Aggressiveness of Listed Firms in Nigeria
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Date
2018
Journal Title
Journal ISSN
Volume Title
Publisher
Amity Journal of Corporate Governance
Abstract
This study examined corporate governance mechanisms and tax aggressiveness of listed firms in
Nigeria. Eighty- five (85) quoted non- financial firms were selected and data were collected over the period
2012 to 2016. Inferential statistics consisting of General Method of Moment was used for the data analysis.
This was after carrying out unit root test and other diagnostic tests respectively. The results obtained
reveal that corporate governance mechanisms exert significant impact on tax aggressiveness in Nigeria.
Specifically, ownership concentration and managerial ownership were positive and significantly impacts
tax aggressiveness of listed non- financial firms in Nigeria whereas board size negatively and significantly
impact tax aggressiveness over the reference period. Board gender diversity and board independence were
significant and exert negative influence on tax aggressiveness of firms in Nigeria. The study recommended
that there has to be a designed framework to efficiently and effectively monitor the interaction between
corporate governance mechanisms and managers’ rent extraction due to tax aggressive behaviour. This will
drastically minimize the tendency for them to engage in rent seeking behaviour. Firms should create a tax
department that should be regarded as profit centers that should be manned by tax experts / auditors who
are deemed to be imbued with wide experience on tax strategies to minimize tax expense payment.
Description
Staff Publication
Keywords
Board size,, Board Independence,, Board Gender,, Managerial Ownership,, Ownership concentration,, Tax Aggressiveness
Citation
Obaretin, O. Corporate Governance Mechanisms and Tax Aggressiveness of Listed Firms in Nigeria. Amity Journal of Corporate Governance 3 (1), 1-12