Corporate Governance Attributes and Tax Planning: Evidence from Listed Financial Services Companies in Nigeria

Abstract

The study examined the association between corporate governance attributes and tax planning of listed financial services companies in Nigeria. The study made use of ex-post facto research design. Sixty-three listed financial services companies in Nigeria made up the study population out of which fifty-four (54) companies were sampled. Secondary data from annual reports and accounts were collected for nine years from 2012-2020 and were analyzed using multiple regression. The study revealed that a significant positive relationship exists between the corporate governance attributes of ownership concentration, board expertise and tax planning. The study also indicated that a negative but not significant relationship exists between board size and tax planning while board independence has a positive but not significant relationship with tax planning. The study concluded that corporate governance attributes play a vital role in tax planning of listed Nigerian financial services companies. The study recommended that companies should always include experts in tax matters on their board and endeavor to always institute healthy tax planning practices.