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. 5 2025
DOI: 10.56201/jafm.vol.11.no5.2025.pg1.12

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Auditors Types and Tax Aggressiveness of Listed Fast Moving Consumer Good Firms in Nigeria

OLATUNJI, Toyin Emmanuel OKEWOLE, Jacob Akintunde

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Abstract

Government aims to maximize tax revenue and minimize over dependence on oil source of revenue. Tax reforms and regimes are introduced aim to achieve tax objectives. Recent increases in the appointments of audit firms which are versatile and experienced in tax related matters raise a concern for connection with tax aggressive practices among listed firms in Nigeria. Therefore, the study investigated the effect of auditors’ types with moderating roles of firm size and leverage on tax aggressiveness of listed Fast Moving Consumer Goods Firms in Nigeria. The study adopted ex-post facto research design using all 21 listed FMCG firms in Nigeria as at 31st December, 2023. Maximum variation purposive sampling technique was used to select 10 listed FMCG firms. Secondary data were obtained from the annual financial reports of the selected listed FMCG firms in Nigeria from 2012 to 2023. Descriptive statistics, correlation and inferential statistics were used to test hypothesis. The study revealed that auditors’ types (Big 4 or Non Big 4) with moderating roles of firm size and leverage have positive and significant effect on CETR (t = 2.78, pv < 0.05). The study concluded that auditors’ types have influence on tax aggressiveness of listed FMCG firms in Nigeria. Audit firms whether Big 4 or Non Big 4 which have more than five clients within the industry should be rotated out in order to improve tax reputation.

keywords:

Auditors’ Types, Firm Size, Leverage, Tax Aggressiveness

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