CORPORATE GOVERNANCE STRUCTURE AND MANUFACTURING FIRMS TAX PLANNING IN NIGERIA

Authors

Nwaiwu, J.N. Department Of Accounting, Faculty of Management Sciences, University of Port Harcourt, Choba, Port Harcourt.

Keywords:

Tax Planning, Financial performance, Manufacturing Firms

Abstract

The serious decline in the price of crude oil in recent years led the government to look for new source of revenue and becomes strict and aggressive to the assessment and collection of revenue from the existing sources. The aim of this study is to explore the relationship between corporate governance structure and manufacturing firms tax planning in Nigeria. secondary data on different types of corporate governance structure and aggregate tax liability from 2015-2022 were collected from Central Bank of Nigeria Statistical Bulletin, National Bureau of Statistics and Federal Inland Revenue Service Pro mass. Considering the moderating firm size relationship, the study made use of data analysis techniques such as the stationarity test, panel regression, and error correction model. It was observed that only board size had a positive and significant effect on aggregate tax liability, while other measures of corporate governance such as board independence and board consistency displayed adverse effect on the tax planning operations of quoted manufacturing firms as captured using the aggregate tax liability. The study concludes that corporate governance practices in sampled firms is not fully potent enough to stir the tax planning operations of quoted manufacturing firms and therefore recommends that; there should be an increase of board size by governments and higher pioneer status and tax holidays which will ensure that manufacturing firms benefit profitably from corporate governance of government.

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Published

2024-04-26

How to Cite

Nwaiwu, J.N. (2024). CORPORATE GOVERNANCE STRUCTURE AND MANUFACTURING FIRMS TAX PLANNING IN NIGERIA. European Journal of Research Development and Sustainability, 5(4), 61-73. Retrieved from https://scholarzest.com/index.php/ejrds/article/view/4497