IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 10 NO. 4 2025
DOI: 10.56201/ijefm.v10.no4.2025.pg13.32

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

Udeme Mfon Monday, Dr Uwem E Uwah, Dr Peter A Uklala

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Abstract

Despite the growing body of literature on tax aggressiveness in financial management research, there is a gap in understanding the specific determinants of tax aggressiveness among companies in various industries, including the construction/real estate sector. This gap hinders the development of industry-tailored taxation strategies and obscures the nuanced factors shaping tax behaviours in this sector. In view of this, this study investigated the relationship between corporate attributes and tax aggressiveness of listed construction/real estate companies in Nigeria. However, the specific objectives were to assess the relationship between institutional ownership, liquidity, profitability and effective tax rate of listed 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 Institutional ownership (Coeff. = 0.079938{0.0000}) have significant positive relationship with effective tax rate of quoted construction/real estate in Nigeria while Liquidity (Coeff. = -0.027056{0.7482}) and profitability has a non-significant relationship (Coeff. = 1.383168{0.0793}) with effective tax rate of quoted construction/real estate companies in Nigeria. It was thus concluded that 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 management of construction/real estate companies should engage institutional investors and other stakeholders on tax-related matters as this can help the company to gain valuable feedback and perspectives.

keywords:

Ownership structure; Effective tax rates; Institutional ownership; Profitability; Liquidity.

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