Journal of Emerging Trends in Economics and Management Sciences: Home

Article Title:
Determinants of Corporate Tax Avoidance: Empirical Evidence of Quoted Companies in Nigeria
by Iyefekhe Christian (Ph.D) and Imagbe V.U (Ph.D)

Abstract:
This study was conducted to generally examine an insight on the concept of corporate determinants of tax avoidance: Empirical evidence from Nigeria. The aim of the study was to properly assess the literature on the issues regarding tax avoidance and determinants of corporations precipitating its occurrence. The variables of Profitability (PROF), Firm Size (FSIZE), Leverage (LEV) and industry type (INDTY) were analysed to determine their relationship with corporate tax avoidance (CTA).To realize the objective of this study, a total of forty eight (48) companies quoted on Nigeria Stock Exchange has been chosen and analysed from 2012-2017. Due to the cross sectional nature of the study, the OLS multiple regression was employed with the aid of E-view 8.0 econometric packages for the analysis of data. The outcome of the study indicated that the independent variable of profitability, firm size and industry type were found to be significant and also have positive relationship with the avoidance of corporate tax, whereas leverage was positively related with corporate tax avoidance but noticed not to be significant. Therefore, owing to the significant nature of profitability, firm size, and industry type with corporate tax avoidance, the need to critically examine the concept cannot be over emphasized. In relation to the findings, the study therefore recommends that more attention has to be given to Profitability, firm size and industry type in the course of considering the determinants that could affect tax avoidance in Nigeria particularly. This study therefore contributes to the existing literature by providing a feasible explanation for the inconclusive results.

Keywords: Firm Size, Industry Type, Leverage, Profitability, Tax Avoidance

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