Effects of Tax Planning and Corporate Governance on Firms’ Value of Deposit Money Banks in Nigeria: Pre and Post IFRS Adoption

Michael Adeyemi  OLAYIWOLA; Obafemi  T. O.

doi:10.59890/v5gt2e80

Authors

Michael Adeyemi OLAYIWOLA Department of Finance and Account LAUTECH Teaching Hospital Ogbomoso, Oyo State Author
Obafemi T. O. Department of Accounting and Finance, Lokoja Author

DOI:

https://doi.org/10.59890/v5gt2e80

Keywords:

Tax Savings, Corporate Governance, Board Independent, Tax Planning, Firm Value, Tobins’q

Abstract

This study examined the moderating role of corporate governance on corporate tax planning strategy and firm value. Firm value was used as dependent variable while tax savings and tax saving moderated board independence were used as independent variables. A sample of 10 selected banks was used for the period of twenty years spanning 2003 to 2022. The study employed ex-post facto and cross sectional research design. The secondary source of data were collected from annual reports of the selected deposit money banks and the specific objective and hypothesis were formulated, subjected to some preliminary data tests like unit root test, descriptive statistics and Pearson correlation matrix analysis, data were analyzed using Generalized Method of Moment (GMM). The result revealed among others that tax savings has no significant (t stat: -0.30964, pv. >0.05 effect on firms’ value before IFRS adoption but has a positive significant effect on firms’ value after IFRS adoption in Nigeria. The moderating effect of board independent on the relationship between tax savings and firm value of deposit money banks in Nigeria is not significant before the adoption of IFRS but has a negative significant after the IFRS adoption. Based on the findings above, the study recommended among others, there is need for updating regulatory frameworks, educating stakeholders, and conducting further research to adapt to the changing dynamics influenced by board independence, tax savings, and IFRS adoption

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