Corporate Tax Avoidance and Firm Financial Performance

Student: Olamide Kenneth Akingbola (Project, 2025)
Department of Accounting
Elizade University, Ilara-Mokin, Ondo State

Abstract

This study examines the impact of corporate tax avoidance on firm financial performance of selected quoted companies in the Nigerian exchange group (NXG), the focus was on the FastMoving Consumer Goods (FMCG) companies.
The study regressed the dependent variable – effective tax rate (ETR) on the independent variables- profit before tax, return on total asset and earnings per share. A sample of twentyone (21) listed fast-moving consumer goods (FMCG) companies from the period of 2018-2022 were examined using descriptive statistics, correlation analysis and regression techniques to analyze the data in order to achieve the research objectives.
The empirical results revealed that there is no significant relationship between the ETR and the firm financial performance, PBIT and EPS has a significant positive impact on financial performance while ROA has non-significant effect on financial performance. The study concludes that GTA has significant effect on financial performance of firm in the study period.
The study recommends amongst others that the management should prioritize strategies that bolster profitability. And this could involve streamlining operations, optimizing resource allocation and exploring avenues for revenue growth, which could improve the future financial performance of the company.

Keywords
corporate avoidance financial performance
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