ASSESSMENT ON THE IMPACT OF CORPORATE GOVERNANCE MECHANISMS ON CORPORATE TAX AVOIDANCE

Abstract

The examined the impact of corporate governance and corporate tax avoidance among deposite money banks in Nigeria for the period of 2015 to 2021. The Nigerian Deposit Insurance Corporation (NDIC) reports and annual reports of the banks served as the primary sources of data for the study. For the purpose of data analysis, the study made use of descriptive statistics, a correlation matrix, a cross sectional dependency test, a panel unit root test, and a panel cointegration test. To test the hypotheses, the Panel Generalized Method of Moments (PGMM) was employed. According to the (PGMM), there is negative and insignificant correlation between board size and tax avoidance. Tax avoidance is positively but insignificantly impact on institutional ownership. Base on the study outcome, regulatory bodies such as Central Bank of Nigeria, Federal Inland Revenue Service, Security Exchange Commission and Nigerian Exchange Group should implement policies that will tighten monitoring and oversight of decisions made by Nigerian deposit money institutions, which will enhance transparency and accountability in the country's banking sector and eliminate or curtail tax avoidance tactics.