Open AccessCorporate Governance and Tax Avoidance: Evidence from Nigerian Quoted Food and Beverage Companies
Author(s) -
Raymond A. Ezejiofor,
Emmanuel C. Ezenwafor
Publication year - 2021
Publication title -
macro management and public policies
Language(s) - English
Resource type - Journals
ISSN - 2661-3360
DOI - 10.30564/mmpp.v2i4.2632
Subject(s) - nonprobability sampling , corporate governance , descriptive statistics , business , accounting , tax planning , de facto , data collection , marketing , tax avoidance , finance , statistics , double taxation , mathematics , political science , population , demography , sociology , law
The study examined the effect of corporate governance on tax avoidance of quoted food and beverage companies in Nigeria. Specifically, the study seeks to determine the effect of CEO duality on effective tax rate of quoted foods and Beverage companies. Ex post facto research design was adopted. The population of this study covered twelve (12) Foods and Beverages quoted on the Nigerian Stock Exchange as at 2019. Purposive sampling technique was applied (Non-random sample) in selecting nine (9) companies during the data collection process. Data were collected from annual reports and accounts of the sampled companies from 2013-2019. Data for the study analyzed using descriptive statistics and regression was used to test the relationship between the independent variable and dependent variables. This was done with aid of the e-view was at 95% confidence at five degree of freedom (df). The result shows that CEO duality was significant and had a positive coefficient on tax planning of food and beverage companies in Nigeria. The study therefore, recommended that non-separation of CEO from Chairman of the Board may lead to higher levels of tax planning; and an opportunity for manager’s rent extraction, because of their dominating role in order to ensure that adequate oversight roles are separated.