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Tax Shields of Medical Expenses and Earnings Management of Selected Deposit Money Banks in Nigeria

Ikilidih, Joy N and Adebisi, Julius Adedeji

Abstract

This ascertained the effect between corporate tax shields of medical expenses and earnings management of selected deposit money banks in Nigeria. Ex Post Facto research was adopted. Data were obtained from the annual reports and accounts of the sampled banks. The study employed regression analysis via e-view 9.0. The study revealed that medical expenses is positively and significantly affect earnings management. Based on the findings, the study recommended that the bank management should increase their medical expenses in order to reduce their tax expenses, hence, tax shield is a benefit of debt financing over equity financing.

Keywords

Corporate tax shieldMedical expenses and Earnings management

References

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