TAX AGGRESSIVENESS AND FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA

Abstract

The study examines the effect of tax aggressiveness on the financial performance of listed industrial goods firms in Nigeria. The population of the study is made up of the entire listed industrial goods firms in Nigeria. Sample of 10 firms were selected using a census sampling technique and data were collected using secondary sources of data collection from the annual report and accounts of the selected firms. Data for the study were analyse using descriptive and inferential methods of data analyses using STATA 13 statistical software. Findings of the study revealed that GAAP effective tax rate has significant positive effect on return on assets. On the other hand, cash effective tax rate has negative significance effect on return on assts. Based on this, the study concludes that Tax aggressiveness has significance effect on financial performance of listed industrial goods firms in Nigeria and therefore recommends that industrial goods firms should utilized the tax planning opportunities available to them so as to minimize their tax liabilities and improve their performance.