Tax Planning and Value of Listed Non-Financial Firms in Nigeria: The Mediating Effect of Profitability
DOI:
https://doi.org/10.23918/ejmss.V5i2p41Keywords:
Tax Planning, Profitability, Firm Value, Mediation, Tobin’s Q, NigeriaAbstract
This paper explored the mediating effect of profitability on the link between tax planning (TPL) and the value of listed non-financial firms in Nigeria. Data for the study was extracted from the annual reports of 45 firms, covering the period 2011 to 2022. Panel regression was adopted for the analysis. Specifically, multiple regression techniques were used to estimate the models. The outcome of the study established that tax planning strongly influences firms' value and drives their profitability. However, it is established that profitability has a significant mediating effect on tax planning and the value of firms in Nigeria. Thus, profitability mediates the Link between tax planning and the value of listed non-financial firms in Nigeria. Therefore, the firms should institute strategic tax planning that will help to achieve minimum tax liability.
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Copyright (c) 2024 Isah Umar Kibiya, ARMAYAU ALHAJI SANI, Sabo Mohammed, Mustapha Usman, Abubakar Umar
Eurasian Journal of Management & Social Sciences (EJMSS)
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