AUDIT COMMITTEE EFFECTIVENESS, RISK COMMITTEE PRESENCE AND TAX AGGRESSIVENESS IN LISTED NON-FINANCIAL FIRMS IN NIGERIA

Dick O. Irri (), Suleiman A. S. Aruwa () and Mohammed A. Mainoma ()
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Dick O. Irri: Department of Accounting, Postal: Nasarawa State University, Keffi, https://journal.citn.org/
Suleiman A. S. Aruwa: Department of Accounting, Postal: Nasarawa State University, Keffi,, https://journal.citn.org/
Mohammed A. Mainoma: Department of Accounting, Postal: Nasarawa State University, Keffi, https://journal.citn.org/

Journal of Taxation and Economic Development, 2021, vol. 20, issue 2, 34-51

Abstract: The objective of this study is to investigate the effect of audit committee effectiveness and risk committee presence on tax aggressiveness in non-financial firms listed in Nigeria. Using a correlational design, a sample of 80 companies for a period of 12 years (2008-2019) was selected from a target population of 98 listed non-financial services firms. Tax aggressiveness (TAXAGG) was measured using the cash flow effective tax rate while Audit Committee Effectiveness was measured using the sum of four attributes of audit committee (size, independence, meetings, and financial expertise) and risk committee was measured using a dummy representing 1 for presence of risk management committee or chief risk officer; otherwise, 0. Censored tobit regression technique was used to analyse the data. The findings showed that audit committee effectiveness (ACEFF) and risk committee presence both have significant effect on tax aggressiveness. The study therefore concludes that audit committee effectiveness and risk committee presence are significant corporate governance attributes that can be utilised in mitigating tax aggressiveness. The study recommends among others that audit committees of listed non-financial services firms in Nigeria should be strengthened to sustain their effectiveness. In addition, steps should be taken to ensure that risk management committees are not just established but that proper steps to assess and mitigate the impact of identified risks through monitoring and managing of company risk profile is given serious attention

Keywords: audit committee effectiveness; risk committee presence and tax aggressiveness (search for similar items in EconPapers)
JEL-codes: M42 (search for similar items in EconPapers)
Date: 2021
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