Board Structure and Tax Aggressiveness of Quoted Deposit Money Banks in Nigeria

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Hauptverfasser: Ojo, Lukman Olatunji, Oyedokun, Godwin Emmanuel, Fasau, Kayode Olushola
Format: Recurso digital
Sprache:Englisch
Veröffentlicht: Zenodo 2024
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author Ojo, Lukman Olatunji
Oyedokun, Godwin Emmanuel
Fasau, Kayode Olushola
author_facet Ojo, Lukman Olatunji
Oyedokun, Godwin Emmanuel
Fasau, Kayode Olushola
contents <p>This study examines the effect of board structure on tax aggressiveness among quoted <br>deposit money banks in Nigeria over the period 2015–2024. The research is motivated by <br>the increasing global scrutiny of corporate tax behavior and the growing recognition of <br>governance mechanisms as determinants of fiscal responsibility. Adopting an ex-post facto <br>research design, the study utilizes a balanced panel dataset of thirteen (13) deposit money <br>banks listed on the Nigerian Exchange Group (NGX). Tax aggressiveness is measured using <br>the cash effective tax rate (cash taxes paid divided by operating cash flow), while board <br>structure is proxied by board independence, board size, and board financial expertise, with <br>firm size introduced as a control variable. Data were extracted from audited annual reports <br>and analyzed using panel regression techniques.  the Hausman specification test supports the <br>adoption of the random-effects model. The result indicate that board size has a positive and <br>significant effect on tax aggressiveness, Conversely, board independence ha a negative and <br>significant effect on tax aggressiveness, Board financial expertise has insignificant effect on <br>tax aggressiveness The study concludes that the composition and functionality of corporate <br>boards are vital determinants of responsible tax behavior among financial institutions. It <br>recommends that regulators such as the Central Bank of Nigeria (CBN) and the Financial <br>Reporting Council (FRCN) reinforce governance frameworks that ensure optimal board size, <br>strengthen functional independence beyond statutory quotas, and promote continuous <br>capacity-building in financial oversight and tax governance. Strengthening these <br>mechanisms will align Nigeria’s banking governance with global best practices and foster a <br>more transparent and accountable tax culture. </p>
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spellingShingle Board Structure and Tax Aggressiveness of Quoted Deposit Money Banks in Nigeria
Ojo, Lukman Olatunji
Oyedokun, Godwin Emmanuel
Fasau, Kayode Olushola
Board structure
corporate tax behaviour
Deposit money banks
Fiscal responsibility
Tax aggressiveness
<p>This study examines the effect of board structure on tax aggressiveness among quoted <br>deposit money banks in Nigeria over the period 2015–2024. The research is motivated by <br>the increasing global scrutiny of corporate tax behavior and the growing recognition of <br>governance mechanisms as determinants of fiscal responsibility. Adopting an ex-post facto <br>research design, the study utilizes a balanced panel dataset of thirteen (13) deposit money <br>banks listed on the Nigerian Exchange Group (NGX). Tax aggressiveness is measured using <br>the cash effective tax rate (cash taxes paid divided by operating cash flow), while board <br>structure is proxied by board independence, board size, and board financial expertise, with <br>firm size introduced as a control variable. Data were extracted from audited annual reports <br>and analyzed using panel regression techniques.  the Hausman specification test supports the <br>adoption of the random-effects model. The result indicate that board size has a positive and <br>significant effect on tax aggressiveness, Conversely, board independence ha a negative and <br>significant effect on tax aggressiveness, Board financial expertise has insignificant effect on <br>tax aggressiveness The study concludes that the composition and functionality of corporate <br>boards are vital determinants of responsible tax behavior among financial institutions. It <br>recommends that regulators such as the Central Bank of Nigeria (CBN) and the Financial <br>Reporting Council (FRCN) reinforce governance frameworks that ensure optimal board size, <br>strengthen functional independence beyond statutory quotas, and promote continuous <br>capacity-building in financial oversight and tax governance. Strengthening these <br>mechanisms will align Nigeria’s banking governance with global best practices and foster a <br>more transparent and accountable tax culture. </p>
title Board Structure and Tax Aggressiveness of Quoted Deposit Money Banks in Nigeria
topic Board structure
corporate tax behaviour
Deposit money banks
Fiscal responsibility
Tax aggressiveness
url https://doi.org/10.5281/zenodo.17352390