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Corporate Tax Planning And Performance Of Nigerian Listed Oil & Gas Firms

Author

Listed:
  • Jayeola OLABISI

    (Federal University of Agriculture, Abeokuta, Nigeria)

  • Sunday Olugboyega KAJOLA

    (Federal University of Agriculture, Abeokuta, Nigeria)

  • Dauda Adewole OLADEJO

    (Federal University of Agriculture, Abeokuta, Nigeria)

  • John Ayodele AJAYI

    (Federal University of Agriculture, Abeokuta, Nigeria)

  • Ibrahim Akanmu HAMZAT

    (Federal University of Agriculture, Abeokuta, Nigeria)

Abstract

Corporate tax is obligatory and constitutes an unbalanced transfer of resources to the government with a negative impact on firm performance. However, organizations adopt tax planning strategies to curtail tax liability without adverse effect on firm performance. Thus, this study examined the relationship between tax planning and performance of Nigerian listed Oil & Gas firms. The study adopted a descriptive research design and secondary data were collected from selected five firms over a period of six years (2012-2017). Descriptive Statistics and simple pooled Ordinary Least Square regression analysis were used to evaluate the probable relationship among the identified variables. The indices of determination for corporate tax planning are: Effective Tax Rate (ETR); Firm Size (FS); Firm Age (FAGE); Financial Leverage (FL) and Return on Assets (ROA) for performance. The results of the study showed that ETR, FS, and FAGE have significant relationship with ROA of Nigerian listed Oil & Gas firms (p 0.05). The study concluded that an optimal mix of tax planning strategies enhance performance of Nigerian listed Oil & Gas firms. Therefore, it is recommended that the management of Nigerian listed Oil & Gas firm should incorporate tax planning into their overall financial scheme for improved performance.

Suggested Citation

  • Jayeola OLABISI & Sunday Olugboyega KAJOLA & Dauda Adewole OLADEJO & John Ayodele AJAYI & Ibrahim Akanmu HAMZAT, 2019. "Corporate Tax Planning And Performance Of Nigerian Listed Oil & Gas Firms," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 4(1), pages 12-24.
    • Handle: RePEc:brc:brccej:v:4:y:2019:i:1:p:12-24
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    References listed on IDEAS

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    More about this item

    Keywords

    Effective Tax Rate; Firm Size; Firm Age; Financial Leverage and Return on Equity;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

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