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The moderating effect of profitability on the relationship between ownership structure and corporate tax avoidance in Nigeria listed consumers goods firms

Link to publisher's homepage at https://ijbt.unimap.edu.my

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Bibliographic Details
Main Author: Udisifan, Michael Tanko
Other Authors: umichaeltanko@gmail.com
Format: Article
Language:English
Published: School of Business Innovation and Technopreneurship, Universiti Malaysia Perlis (UniMAP) 2020
Subjects:
Ownership structure
Corporate tax avoidance
Moderating effect of ROA
Consumers’ goods firms
Nigeria
Online Access:http://dspace.unimap.edu.my:80/xmlui/handle/123456789/67081
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spelling my.unimap-670812020-09-09T00:38:03Z The moderating effect of profitability on the relationship between ownership structure and corporate tax avoidance in Nigeria listed consumers goods firms Udisifan, Michael Tanko umichaeltanko@gmail.com Ownership structure Corporate tax avoidance Moderating effect of ROA Consumers’ goods firms Nigeria Link to publisher's homepage at https://ijbt.unimap.edu.my The study examined the moderating effect of profitability on the relationship between ownership structure and corporate tax avoidance of listed consumers’ goods firms in Nigeria. Ownership structure was proxies by managerial ownership, institutional ownership and foreign ownership, tax avoidance was measured by GAAP effective tax rate while profitability was measured by return on assets (ROA). Secondary data was extracted from the sampled firm annual report and accounts. The data were analysed using Generalized Least Square (GLS). The study revealed a negative and insignificant relationship between institutional ownership and corporate tax avoidance. Similarly, the moderating effect of ROA on foreign ownership encourages tax avoidance. The study recommended that tax authorities should carry out stringent tax audit and investigate the activities of firms to ensure that tax avoidance of firms is within the armpit of tax law. If this is done, it will help to know if firms are paying the actual taxes they supposed to pay or not. The study also recommends that government should review the provisions for tax allowances and relief granted to corporate entities because most of the firms reported losses in some years in order to take advantage of loss relief while other purchase non-current to enjoy capital allowances. If this is done it will enhance government revenue generation through tax and increase GDP via tax-revenue. The study contributes to the existing knowledge in two ways. First, the practical contribution is that the major finding of the study implies that high profitability encourages foreign investors to invest in Nigeria firms. Second, the theoretical contribution is that the study adds to the existing literature on tax avoidance by considering the moderating effect of profitability because no study used profitability study moderating effect. 2020-09-09T00:38:03Z 2020-09-09T00:38:03Z 2020-06 Article International Journal of Business and Technopreneurship, vol.10(2), 2020, pages 153-172 2231-7090 (printed) 2232-1543 (online) http://dspace.unimap.edu.my:80/xmlui/handle/123456789/67081 https://ijbt.unimap.edu.my en School of Business Innovation and Technopreneurship, Universiti Malaysia Perlis (UniMAP)
institution Universiti Malaysia Perlis
building UniMAP Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaysia Perlis
content_source UniMAP Library Digital Repository
url_provider http://dspace.unimap.edu.my/
language English
topic Ownership structure
Corporate tax avoidance
Moderating effect of ROA
Consumers’ goods firms
Nigeria
spellingShingle Ownership structure
Corporate tax avoidance
Moderating effect of ROA
Consumers’ goods firms
Nigeria
Udisifan, Michael Tanko
The moderating effect of profitability on the relationship between ownership structure and corporate tax avoidance in Nigeria listed consumers goods firms
description Link to publisher's homepage at https://ijbt.unimap.edu.my
author2 umichaeltanko@gmail.com
author_facet umichaeltanko@gmail.com
Udisifan, Michael Tanko
format Article
author Udisifan, Michael Tanko
author_sort Udisifan, Michael Tanko
title The moderating effect of profitability on the relationship between ownership structure and corporate tax avoidance in Nigeria listed consumers goods firms
title_short The moderating effect of profitability on the relationship between ownership structure and corporate tax avoidance in Nigeria listed consumers goods firms
title_full The moderating effect of profitability on the relationship between ownership structure and corporate tax avoidance in Nigeria listed consumers goods firms
title_fullStr The moderating effect of profitability on the relationship between ownership structure and corporate tax avoidance in Nigeria listed consumers goods firms
title_full_unstemmed The moderating effect of profitability on the relationship between ownership structure and corporate tax avoidance in Nigeria listed consumers goods firms
title_sort moderating effect of profitability on the relationship between ownership structure and corporate tax avoidance in nigeria listed consumers goods firms
publisher School of Business Innovation and Technopreneurship, Universiti Malaysia Perlis (UniMAP)
publishDate 2020
url http://dspace.unimap.edu.my:80/xmlui/handle/123456789/67081
_version_ 1678594078257709056
score 13.222552

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