Board Attributes and Tax Compliance Behaviour of Listed Manufacturing Firms in Nigeria
Abstract
This research presented empirical evidence on the impact of board attributes and tax compliance behaviour of twenty-eight (28) listed manufacturing firms in Nigeria between ten years (2015- 2024). The Effective Tax Rate (ETR) was used to proxy tax compliance behaviour obtained using audited financial statements. The panel regression analysis, particularly the Random Effects Model, was the estimation of choice after the Hausman Test was used to examine the relationship between board diversity, independence, size and CEO duality. The study revealed that board independence (coefficient = 0.40, p = 0.25), board independence (coefficient = -0.34, p = 0.22), board size (coefficient = -0.01, p = 0.97), and CEO duality (coefficient = -0.18, p = 0.37) do not have a statistically significant impact on tax compliance behaviour at the 5% significance level. These findings suggested that tax non-compliance, which is a persistent challenge in the Nigerian manufacturing sector and government in terms of revenue generation, is not mainly impacted by the studied board attributes. The study recommended improving tax disclosure standards, board capacity in tax ethics and governance, deterrence of CEO duality, and the introduction of special tax compliance committees to enhance institutional governance and tax compliance in the industry.
Authors
- Oluwamayowa Olalekan Iredele
Department of Accounting, University of Lagos
oiredele@unilag.edu.ng - Alimot Agbeke Samotu
Department of Accounting, University of Lagos
alimotsamotu12@gmail.com - Obafemi Rufus Oyewunmi
Department of Accounting, University of Lagos
ooyewunmi@unilag.edu.ng