ACCOUNTING CONSERVATISM AND CORPORATE TAX AVOIDANCE
This study investigates the effect of accounting conservatism on the corporate tax avoidance of listed non-financial firms in Nigeria. This study computes corporate tax avoidance based on the cash effective tax rate (CETR), GAAP effective tax rate (GETR) and book tax difference (BTD). Accounting co...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Universiti Utara Malaysia
2023-01-01
|
| Series: | The International Journal of Banking and Finance |
| Subjects: | |
| Online Access: | https://e-journal.uum.edu.my/index.php/ijbf/article/view/15064 |
| _version_ | 1828069281821097984 |
|---|---|
| author | Hamid Njiddah Sa’ad Zaid Abubakar Suleiman Salami |
| author_facet | Hamid Njiddah Sa’ad Zaid Abubakar Suleiman Salami |
| author_sort | Hamid Njiddah Sa’ad |
| collection | DOAJ |
| description |
This study investigates the effect of accounting conservatism on the corporate tax avoidance of listed non-financial firms in Nigeria. This study computes corporate tax avoidance based on the cash effective tax rate (CETR), GAAP effective tax rate (GETR) and book tax
difference (BTD). Accounting conservatism was measured using negative accruals. The study employed an ex-post factor research
design utilizing unbalanced panel data. The study covered 48 listed non-financial firms during the period between 2014 and 2020. Three regression models were developed and utilized in the study. The study has revealed that accounting conservatism has a negative and significant effect on both the GETR and BTD. It is recommended that the Financial Reporting Council of Nigeria should encourage promulgation of standards which improve conservatism in financial reporting, as it has been empirically proven to reduce tax avoidance practices by non-financial firms in Nigeria.
|
| first_indexed | 2024-04-11T00:15:39Z |
| format | Article |
| id | doaj.art-a8e07dda1d04460285ef0f0a347c02d4 |
| institution | Directory Open Access Journal |
| issn | 2811-3799 2590-423X |
| language | English |
| last_indexed | 2024-04-11T00:15:39Z |
| publishDate | 2023-01-01 |
| publisher | Universiti Utara Malaysia |
| record_format | Article |
| series | The International Journal of Banking and Finance |
| spelling | doaj.art-a8e07dda1d04460285ef0f0a347c02d42023-01-09T02:08:24ZengUniversiti Utara MalaysiaThe International Journal of Banking and Finance2811-37992590-423X2023-01-0118110.32890/ijbf2023.18.1.3ACCOUNTING CONSERVATISM AND CORPORATE TAX AVOIDANCEHamid Njiddah Sa’ad0Zaid Abubakar1Suleiman Salami2Business School, Ahmadu Bello University, Zaria, NigeriaChairman, Kaduna State Internal Revenue Service, NigeriaAhmadu Bello University, Zaria This study investigates the effect of accounting conservatism on the corporate tax avoidance of listed non-financial firms in Nigeria. This study computes corporate tax avoidance based on the cash effective tax rate (CETR), GAAP effective tax rate (GETR) and book tax difference (BTD). Accounting conservatism was measured using negative accruals. The study employed an ex-post factor research design utilizing unbalanced panel data. The study covered 48 listed non-financial firms during the period between 2014 and 2020. Three regression models were developed and utilized in the study. The study has revealed that accounting conservatism has a negative and significant effect on both the GETR and BTD. It is recommended that the Financial Reporting Council of Nigeria should encourage promulgation of standards which improve conservatism in financial reporting, as it has been empirically proven to reduce tax avoidance practices by non-financial firms in Nigeria. https://e-journal.uum.edu.my/index.php/ijbf/article/view/15064Accounting conservatismtax avoidancebook tax differenceeffective tax rates |
| spellingShingle | Hamid Njiddah Sa’ad Zaid Abubakar Suleiman Salami ACCOUNTING CONSERVATISM AND CORPORATE TAX AVOIDANCE The International Journal of Banking and Finance Accounting conservatism tax avoidance book tax difference effective tax rates |
| title | ACCOUNTING CONSERVATISM AND CORPORATE TAX AVOIDANCE |
| title_full | ACCOUNTING CONSERVATISM AND CORPORATE TAX AVOIDANCE |
| title_fullStr | ACCOUNTING CONSERVATISM AND CORPORATE TAX AVOIDANCE |
| title_full_unstemmed | ACCOUNTING CONSERVATISM AND CORPORATE TAX AVOIDANCE |
| title_short | ACCOUNTING CONSERVATISM AND CORPORATE TAX AVOIDANCE |
| title_sort | accounting conservatism and corporate tax avoidance |
| topic | Accounting conservatism tax avoidance book tax difference effective tax rates |
| url | https://e-journal.uum.edu.my/index.php/ijbf/article/view/15064 |
| work_keys_str_mv | AT hamidnjiddahsaad accountingconservatismandcorporatetaxavoidance AT zaidabubakar accountingconservatismandcorporatetaxavoidance AT suleimansalami accountingconservatismandcorporatetaxavoidance |