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. 8 2024
DOI: doi.org/10.56201/jafm.v10.no8.2024.pg428.446

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Corporate Monitoring Mechanisms and Tax Sheltering Amongst Listed Non-Financial Firms in Nigeria: A Panel Data Analysis

Ndifreke Edem Isaac; Dorathy Christopher Akpan and Mfon Unyime Etuk

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Abstract

There are major issues with accountability, transparency, and ethical tax procedures related to the corporate monitoring systems and tax dodging tactics used by Nigerian listed nonfinancial companies. In view of this, this study examined the relationship between corporate monitoring mechanisms and tax sheltering strategies of listed non-financial firms in Nigeria. However, the specific objectives were to ascertain the relationship between audit committee size and effective tax rate of listed non-financial firms in Nigeria, to establish the relationship between board independence and effective tax rate of listed non-financial firms in Nigeria and to investigate the relationship between CEO duality and effective tax rate of listed nonfinancial firms in Nigeria. The study adopted an ex-post facto research design and utilized a panel data of two hundred and forty (240) pooled observations gathered from twenty (24) listed non-financial firms in Nigeria over ten (10)-year period (2013-2022). The study also employed descriptive statistics tools and panel multiple regression technique to analyze the data via Eviews 10.0 statistical package. The study findings revealed that audit committee size has a significant negative relationship (Coeff. = -0.374976{0.0439}) with effective tax rate of listed non-financial firms in Nigeria. It also revealed that Board independence has a significant negative relationship (Coeff. = -0.284378{0.0016}) with effective tax rate of listed nonfinancial firms in Nigeria while CEO duality has an insignificant positive relationship (Coeff. = 0.920980{0.2153}) with effective tax rate of listed non-financial firms in Nigeria. The Prob (F-statistics) of 0.000510 suggests that audit committee size (AUDCSz), board independence (BODI) and CEO duality (CEOD) of

keywords:

Effective tax rate, audit committee size, Board independence, CEO duality

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