IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 10 NO. 1 2024
DOI: https://doi.org/10.56201/jafm.v10.no1.2024.pg54.73

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Firm Attributes and Aggressive Tax Planning Among Listed Manufacturing Companies in Nigeria

Dibie Ikechukwu, Prof. Okenwa Cyprian Ogbodo

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Abstract

This study aims to investigate the effect of firm attributes on aggressive tax planning among listed manufacturing companies in Nigeria. The specific objectives include assessing the extent to which firm liquidity, firm leverage, firm profitability, firm size, firm age, and firm operating efficiency affect the effective tax rates of listed manufacturing firms in Nigeria. Correlation design was deployed in the study based on a population of forty-four listed manufacturing firms. Purposive sampling was used to select firm-year observations of 240. Secondary were extracted from the annual reports of the sampled firms from 2013 to 2022. The test of hypotheses was done using Robust Least Square regression. The findings revealed the following: Firm liquidity has a non-significant and negative effect on effective tax rate of listed manufacturing firms in Nigeria (p-value = 0.1028); Firm leverage has a significant and negative effect on effective tax rate of listed manufacturing firms in Nigeria (p-value = 0.0000); Firm profitability has a significant and positive effect on effective tax rate of listed manufacturing firms in Nigeria (p-value = 0.0029); Firm size has a significant and negative effect on effective tax rate of listed manufacturing firms in Nigeria (p-value = 0.0147); Firm age has a non-significant and positive effect on effective tax rate of listed manufacturing firms in Nigeria (p-value = 0.5425); Firm operating efficiency has a significant and negative effect on effective tax rate of listed manufacturing firms in Nigeria (p-value = 0.0001). The study recommends that managers should implement a comprehensive liquidity management strategy that considers not only short-term financial needs but also incorporates tax planning objectives. This may involve analyzing the timing of income recognition and expenses to optimize tax positions while maintainin

keywords:

Firm Attributes, Aggressive Tax Planning, Firm Liquidity, Firm Leverage, Firm Profitability, Firm Size, Firm Age, Firm Operating Efficiency, and Effective Tax Rates

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References:

Aggreh, M., Abiahu, M. C. & Nworie, G. O. (2023). Cost Reduction and Financial Performance
of Listed Consumer Goods Firms in Nigeria. Journal of Banking, 11(1), 1-38.

https://www.researchgate.net/publication/376956491
Aladesunkanmi, A. J. (2020). Effect of firm’s characteristics on tax planning in the Nigerian
listed deposit money banks. (Unpublished doctoral dissertation), Kwara State
University, Malete, Nigeria

Alstadsaeter, D.,& Jacco, L. (2013). Does gender diversity
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information asymmetry in equity markets? BRQ Business Research Quarterly, 20(3),
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