Effect of Audit Committee Attributes on Corporate Tax Avoidance of Listed Non-Financial Firms in Nigeria

Jaafaru Modibbo, Prof. Hamisu Suleiman Kargi, Dr. Ibrahim Yusuf and Prof. Salisu Umar
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Jaafaru Modibbo: Ahmadu Bello University, Zaria
Prof. Hamisu Suleiman Kargi: Ahmadu Bello University, Zaria
Dr. Ibrahim Yusuf: Ahmadu Bello University, Zaria
Prof. Salisu Umar: Ahmadu Bello University, Zaria

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 9, 7434-7451

Abstract: This paper investigated the effect of audit committee attributes on corporate tax avoidance of listed non-financial firms in Nigeria. A correlational research design was adopted using secondary data collected from annual reports and accounts of 56 listed non-financial firms in Nigeria for the period of ten (10) years (2014-2023). The data were analysed using descriptive statistics to provide summary statistics for the variables and correlation analysis to determine if there is a correlation between the dependent and explanatory variables of the study. Multiple regression was used to test the study hypotheses using STATA. The analysis revealed the existence of a statistically significant negative relationship between audit committee expertise and corporate tax avoidance. This implies that a higher level of financial expertise among the audit committee members is associated with higher levels of tax avoidance. Furthermore, audit committee gender diversity among listed non-financial firms in Nigeria is negatively associated with corporate tax avoidance. Firms with more diverse audit committees (specifically with greater female representation) tend to engage in more aggressive tax avoidance strategies, resulting in lower long-term cash effective tax rates. Finally, Audit Committee Diligence does not have a statistically significant effect on Corporate Tax Avoidance among listed non-financial firms in Nigeria. Based on the findings, the study recommends that the Securities and Exchange Commission (SEC) should mandate the inclusion of both financial and compliance/legal experts on the audit committees. The study also recommends that the Financial Reporting Council of Nigeria (FRCN) and the Institute of Chartered Accountants of Nigeria (ICAN) should provide enhanced training on ethical tax practices and the societal implications of aggressive tax avoidance for all audit committee members, regardless of gender.

Date: 2025
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