IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH (IJSSMR )

E-ISSN 2545-5303
P-ISSN 2695-2203
VOL. 10 NO. 2 2024
DOI: https://doi.org/10.56201/ijssmr.v10.no2.2024.pg173.188

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Corporate Tax Avoidance and Value of Excess Cash Holdings of Quoted Non-Financial Firms in Nigeria

Lawrence, U. Egbadju

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Abstract

This study investigates if there is any relationship between tax avoidance and value of excess cash holdings of non-financial listed firms in Nigeria. It uses secondarily sourced panel data over the period from 2005 to 2020 of 75 such firms listed on the floor of the Nigerian Exchange Group (NXG). The generalized method of moments (GMM) results reveal that current effective tax rate (current ETR), Henry and Sansing’s (2014) measure and book-tax-differences (BTD) are positively significant with value of excess cash holdings; long-run current ETR, lagged cash ETR and tax shelter score are negatively significant with value of excess cash holdings while lagged current ETR, cash effective tax rate (cash ETR) and long-run cash ETR are insignificant. The study concludes with some recommendations.

keywords:

Tax Avoidance, Excess Cash Holdings,

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References:

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Andhitiyara, S. R. & Dameria, R. P. (2022).The influence of corporate governance on tax
avoidance (study on basic industry and chemicals companies listed on the Indonesia
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