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Effect of Corporate Tax Planning on Value of Quoted Non-Financial Firms in Nigeria

Nzewi Ugochukwu C. and Onwukwe Livinus O.

Abstract

The study examined the effect of corporate tax planning on the firm value of quoted non- financial firms in Nigeria. The study employed Ex Post Facto research design. Effective tax rate and deferred tax expenses were used to measure the independent variables, while TOBIN Q was used for dependent variable. Data were extracted from audited annual reports and accounts of the ten sampled firms listed on the Nigerian Exchange Group. Regression analysis was used to test the hypotheses via E-view 9.0. The result revealed that effective tax rate has a negative and significant effect on firm value of quoted non-financial firms in Nigeria. Meanwhile, the study found that deferred tax expenses have a positive and significant effect on firm value of quoted non-financial firms in Nigeria. The study therefore concludes that corporate tax planning has significant effect on firm value in Nigeria. Based on the findings, the study recommended that since the influence of effective tax rate is statistically significant and so, should be used as a determinant of firm value in Nigeria. Therefore, on the basis of efficient use of tax rate to generate growth should be encouraged. Key words: Effective tax rate, Deferred tax expenses and TOBIN Q

Keywords

Effective tax rateDeferred tax expenses and TOBIN Q

References

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