FIRM-SPECIFIC CHARACTERISTICS AND CORPORATE TAX PLANNING IN NIGERIA

ABSTRACT

The study investigated the relationship between firm-specific characteristics and corporate tax planning in Nigeria. The ex-post facto research design was adopted for this study. Commercial banks listed on the Nigeria Exchange Group were adopted for the scope of this study. The data used in the study were obtained from secondary sources. The research employed Post-regression analysis including; Descriptive Statistics, Correlation Analysis, and a test for the normality of Residua. Furthermore, Panel Least Square regression analysis was carried out and they include; a test for multi-collinearity using the Variance Inflation Factor (VIF) technique, (b) a test for homoscedasticity using the Breusch-Pagan-Godfrey test module, and (c) a test for fixed and random effects errors obtained from effect regression analysis. The findings of the post-regression analysis revealed that working capital as proxy by Cash Conversion Cycle (CACC) had a positive but insignificant effect on tax planning as proxy by Non-debt tax shield (NTAX); Leverage (DEXA) significantly increases tax planning as proxy by Non-debt tax shield (NTAX); Capital expenditure (CPXA) had a negative and significant effect on tax planning (NTAX); Dividend payout (DIVP) had an insignificant relationship with tax planning (NTAX); Cash Holding (CTAR) had a negative and significant effect on tax planning as proxy by non-debt tax shield (NTAX).