The Relationship Between Tax Aggressiveness and Performance of Listed Firms in Nigeria

Student: Mmachi Favour Onyeka (Project, 2025)
Department of Accounting
Delta State University, Abraka, Delta State


Abstract

Abstract

This study examines the relationship between tax aggressiveness and the performance of listed firms in Nigeria. Tax aggressiveness refers to deliberate strategies adopted by firms to minimize tax liabilities through legal and, at times, borderline methods of tax avoidance. Using data from selected firms listed on the Nigerian Exchange Group (NGX) between 2015 and 2023, the research investigates whether such aggressive tax behaviors influence financial performance indicators like Return on Assets (ROA) and Return on Equity (ROE). Employing a quantitative design, secondary data were obtained from audited annual reports. The findings reveal a significant negative relationship between tax aggressiveness and firm performance, suggesting that excessive tax avoidance may expose firms to reputational risks and regulatory scrutiny, which can reduce long-term profitability. The study recommends transparent tax strategies and improved corporate governance practices.

Keywords
relationship aggressiveness performance listed firms nigeria