Influence of Corporate Firm Characteristics on Tax Avoidance in Nigeria: A Study of Consumer Sector of the Economy

Abstract

This study investigated corporate firm characteristics and tax avoidance of consumer goods companies that are quoted in Nigeria. The variables of corporate firm characteristics (firm size (FSIZE), firm profitability (FPROF) and firm leverage (FLEVE)) were analysed to determine their influence on tax avoidance (TAXA). For the objective of the study to be achieved, twenty- six (26) quoted companies on the Nigeria Stock Exchange (NSE) from the consumer sector of the economy were cautiously selected and analyzed for the period (2016-2020). The study employed the panel least squares (PLS) regression by using E-view 9.0 packages for the data to be analyzed. The findings of the result showed that firm size (FSIZE), firm profitability (FPROF) and firm leverage (FLEVE) were found to be significant and having positive influence on tax avoidance (TAXA). In view of the findings, it was therefore recommended that the independent variables of firm size (FSIZE), firm profitability (FPROF) and firm leverage (FLEVE) should be given considerable attention when considering corporate firm characteristics as it relates to tax avoidance of consumer goods companies that are quoted in Nigeria.