BOARD ATTRIBUTES AND TAX PLANNING OF LISTED MANUFACTURING FIRMS IN NIGERIA

Abstract

The study investigates the relationship between board attributes and tax planning of 29 listed manufacturing firms in Nigeria, out of 117 listed non-financial service firms as of 31^st December 2012, for a period of eleven years from 2012 to 2022. The study extracts data from annual reports and accounts of the listed manufacturing firms in Nigeria. The study aligns with correlational research design and positivism research philosophy. Board independence, board gender, board meetings, and board education were used as a proxy of board attributes. The Effective Tax Rate (ETR) method is applied to measure the tax planning of the sampled firms using the multiple regression technique. The findings of the analysis reveal that board meetings and board gender affect ETR positively and significantly. Hence, board independence reveals a negative and significant effect on the ETR of listed manufacturing firms in Nigeria. On the other hand, board education proves to have no significant impact on the ETR of listed manufacturing firms in Nigeria. The study recommends that the board meeting and board gender should be increased to enhance tax planning activities, which subsequently reduces the tax burden of listed manufacturing firms in Nigeria. The study provides policy implications for the board of directors and decision-makers in the decision-making process regarding the proportion of female directors, independent directors, number of meetings, and educational qualification.