IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 11 NO. 1 2025
DOI: 10.56201/jafm.vol.11.no1.2025.pg143.162

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Determinants of Tax Aggressiveness among Quoted Construction/Real Estate Companies in Nigeria

Udeme Mfon Monday, Dr. Uwem Uwah, Dr. Emmanuel Emenyi

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Abstract

Tax aggressiveness, characterized by strategic efforts to minimize tax liabilities within legal boundaries, is a prevalent phenomenon in the business world, influencing tax compliance, revenue collection, and economic development. In view of this, this study investigated the determinants of tax aggressiveness among quoted Nigerian construction/real estate companies. However, the specific objectives were to assess the relationship between board independence, leverage, institutional ownership and effective tax rate of quoted construction/real estate companies in Nigeria. The study adopted ex-post facto research design and utilized a panel data of seventy (70) pooled observations gathered from seven (7) quoted construction/real estate companies in Nigeria over a period of ten (10) years (2014-2023) and employed a panel multiple regression technique to analyze the data via E-views 10.0 statistical package. The study findings revealed that Board independence (Coeff. = 1.542527{0.0286}) and Institutional ownership (Coeff. = 0.079938{0.0000}) have significant positive relationship with effective tax rate of quoted construction/real estate in Nigeria suggesting reduced tax aggressiveness while Leverage (Coeff. = -0.641556{0.0636}) have non-significant negative relationships with effective tax rate of quoted construction/real estate companies in Nigeria. It was thus concluded that board independence and institutional ownership are significant determinants of tax aggressiveness among quoted Nigerian construction/real estate companies at 5% significance level. It was recommended, amongst others, that quoted Nigerian construction/real estate companies should prioritize board independence by increasing the number of non-executive directors so as to ensure transparent tax practices at all times.

tax aggressiveness; effective tax rate; institutional ownership; leverage; board independence.

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