A dynamic panel data approach of corporate tax avoidance and debt financing in Nigeria

Armaya’u Alhaji Sani, Isah Umar Kibiya, Mujeeb Saif Mohsen Al-Absy, Muhammad Liman Muhammad, Hussaini Bala, Ghousia Khatoon, Sani Damamisau Mohammed and Sunusi Garba

Cogent Business & Management, 2024, vol. 11, issue 1, 2316283

Abstract: This study examines the influence of corporate tax avoidance on the debt financing of listed conglomerate firms in Nigeria. The study utilized documentary data collected from the annual reports and accounts of the sampled companies from 2010 to 2021. The data were analyzed using the Generalized Method of Moments (GMM). The results of the main analysis indicate that CETR and BTD have a negative and strong association with debt policy, proxied by debt to equity and debt to total assets. These findings imply that tax avoidance is positive and therefore more likely to increase the debt capital of listed companies in Nigeria. Hence, it is recommended that the management of conglomerate firms strive to strike a balance between non-debt tax shields and a tax shield in its effort to reduce its taxable income, as the cost of conventional debt is lower.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/23311975.2024.2316283 (text/html)
Access to full text is restricted to subscribers.

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:taf:oabmxx:v:11:y:2024:i:1:p:2316283

Ordering information: This journal article can be ordered from
http://cogentoa.tandfonline.com/journal/OABM20

DOI: 10.1080/23311975.2024.2316283

Access Statistics for this article

Cogent Business & Management is currently edited by Len Tiu Wright and Tahir Nisar

More articles in Cogent Business & Management from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().