TAX AGGRESSIVENESS AND GROWTH OF LISTED CONSUMER GOODS FIRMS IN NIGERIA
Keywords:
Tax Aggressiveness, Effective Tax Rate Aggressiveness, Book Value Tax Difference Aggressiveness, Market Value Tax Aggressiveness, Firm GrowthAbstract
The study investigated tax aggressiveness and growth of listed consumer goods firm in Nigeria. The Specific objectives are to examine the effect of leverage (LEV) tax aggressiveness on firm growth; evaluate the effect of effective tax rate (ETR) aggressiveness on firm growth; investigate the effect of book tax difference (BTD) aggressiveness on firm growth; ascertain the effect of market value (MDV) tax aggressiveness on firm growth in Nigeria. The study adopted the ex-post facto analytical research design and used secondary data collected from the annual reports of the selected fifteen (15) consumer goods firms quoted on the Nigerian Exchange Group (NEG) spanning from 2012 to 2024. The hypotheses were tested using regression of ordinary least square method at 5% level of significance, with the aid of E-view version 9.0 software package. The results revealed that leverage tax aggressiveness and book tax difference aggressiveness were negative and have insignificant effect on firm growth; whereas effective tax rate aggressiveness is positive and has insignificant effect on firm growth. Market value tax aggressiveness is also positive but has significant effect on firm growth in Nigeria. The study therefore concluded that there are positive relationship between effective tax rate and firm growth and also between market value and firm growth. Though, the negative association also exist between leverage tax aggressiveness, book tax difference aggressiveness and firm growth of consumer goods firms in Nigeria. The study recommended among others that consumer goods firms should always adopt strategies that would increase the market value (MBV) of their shares as this will likely enhance the growth of their firms, but should avoid the adoption of leverage (LEV) tax aggressiveness since it was found that it made negative contribution to the growth of the firms studied.
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