CORPORATE TAX PLANNING AND PERFORMANCE OF NIGERIAN LISTED OIL & GAS FIRMS

Jayeola Olabisi (), Sunday Kajola, Dauda Adewole Oladejo (), John Ayodele Ajayi () and Ibrahim Akanmu Hamzat ()
Additional contact information
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

Contemporary Economy Journal, 2019, vol. 4, issue 1, 12-24

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.

Keywords: Effective Tax Rate; Firm Size; Firm Age; Financial Leverage and Return on Equity (search for similar items in EconPapers)
JEL-codes: H21 H25 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.revec.ro/papers/190102.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:brc:brccej:v:4:y:2019:i:1:p:12-24

Access Statistics for this article

More articles in Contemporary Economy Journal from Constantin Brancoveanu University
Bibliographic data for series maintained by Cristina GANESCU ().