Impact of Company Characteristics on Aggressive Tax Avoidance in Nigerian Listed Insurance Companies

Khadijat Adenola Yahaya; Kabir Yusuf

doi:10.14710/jab.v9i2.30512

DOI: https://doi.org/10.14710/jab.v9i2.30512

Impact of Company Characteristics on Aggressive Tax Avoidance in Nigerian Listed Insurance Companies

*Khadijat Adenola Yahaya

- University of Ilorin, Nigeria

Kabir Yusuf - University of Ilorin, Nigeria

Received: 3 Jun 2020; Revised: 14 Aug 2020; Accepted: 14 Aug 2020; Available online: 30 Sep 2020; Published: 30 Sep 2020.

BibTex Citation Data :

@article{JAB30512,
    author = {Khadijat Yahaya and Kabir Yusuf},
    title = {Impact of Company Characteristics on Aggressive Tax Avoidance in Nigerian Listed Insurance Companies},
    journal = {Jurnal Administrasi Bisnis},
  volume = {9},
    number = {2},
    year = {2020},
    keywords = {Company characteristic; Insurance; Taxation; Tax avoidance; Tax aggressive},
    abstract = { Tax avoidance has been identified as one of the tools companies used legally to pay less to government as corporation taxes. This attributed to low revenue target from taxes, thus, holding the continent back by starving the government of the revenue it needs for development. It is against this background, this study examined company characteristics and aggressive tax avoidance in Nigerian listed insurance companies. It assessed the impact of firm size, profitability, leverage and firm age on aggressive tax avoidance of listed insurance companies in Nigeria. The study adopted ex-post facto research design, and data were drawn from the audited annual reports of twenty (20) random sample listed insurance companies between 2010 and 2018. The model of the study was estimated using a two-step system GMM panel model estimator. The results of the study revealed that firm size (coeff of 0.628) and Leverage ( with coeff of 0.549 ) have a positive and significant (p-value < 1% level of significance) impact on aggressive tax avoidance, while firm’ Profitability (coeff of -0.843 ) and Age (with coeff of -0.056 ) have a negative and significant. The study concluded that company characteristics influences aggressive tax avoidance of insurance companies in Nigeria. Specifically, firm’ size and leverage have a positive impact on aggressive tax avoidance in Nigerian listed insurance companies while firm’ profitability and Age have a negative effect on aggressive tax avoidance. Thus, the study recommends among others that    firm sixe should be well formulated in accordance with regulating bodies like the Corporate Affairs Commission and National Deposit Insurance Cooperation. },
   issn = {2548-4923},   pages = {101--111}  doi = {10.14710/jab.v9i2.30512},
    url = {https://ejournal.undip.ac.id/index.php/janis/article/view/30512}
}

Citation Format:

Abstract

Tax avoidance has been identified as one of the tools companies used legally to pay less to government as corporation taxes. This attributed to low revenue target from taxes, thus, holding the continent back by starving the government of the revenue it needs for development. It is against this background, this study examined company characteristics and aggressive tax avoidance in Nigerian listed insurance companies. It assessed the impact of firm size, profitability, leverage and firm age on aggressive tax avoidance of listed insurance companies in Nigeria. The study adopted ex-post facto research design, and data were drawn from the audited annual reports of twenty (20) random sample listed insurance companies between 2010 and 2018. The model of the study was estimated using a two-step system GMM panel model estimator. The results of the study revealed that firm size (coeff of 0.628) and Leverage ( with coeff of 0.549 ) have a positive and significant (p-value < 1% level of significance) impact on aggressive tax avoidance, while firm’ Profitability (coeff of -0.843 ) and Age (with coeff of -0.056 ) have a negative and significant. The study concluded that company characteristics influences aggressive tax avoidance of insurance companies in Nigeria. Specifically, firm’ size and leverage have a positive impact on aggressive tax avoidance in Nigerian listed insurance companies while firm’ profitability and Age have a negative effect on aggressive tax avoidance. Thus, the study recommends among others that firm sixe should be well formulated in accordance with regulating bodies like the Corporate Affairs Commission and National Deposit Insurance Cooperation.

Fulltext View|Download

Keywords: Company characteristic; Insurance; Taxation; Tax avoidance; Tax aggressive

Funding: Nil

Article Metrics:

Article Info

Section: Articles

Language : EN

In Vol 9, No 2 (2020)

Recent articles

Pengelolaan wisata kampung blekok sebagai upaya peningkatan ekonomi masyarakat berbasis community based tourism kabupaten situbondo The relationship between the level of satisfaction on the growth of Instagramable Place and Motivation of the Users in increasing Income Analisis Faktor-Faktor Yang Memengaruhi Partisipasi UKM Tahu Dalam Pengelolaan Lingkungan Hidup di Kota Semarang More recent articles

Most cited articles

Pengaruh E-Service Quality dan E-Security Seals Terhadap E-Satisfaction Melalui Keputusan Pembelian Konsumen E-Commerce (Studi Kasus pada Konsumen Lazada Indonesia) Pengaruh Nilai Pelanggan dan Kualitas Layanan Terhadap Loyalitas Pelanggan, Melalui Kepuasan Pelanggan Pada Pelanggan Bus Efisiensi (Studi PO Efisiensi Jurusan Yogyakarta-Cilacap) Pengaruh Keselamatan Dan Kesehatan Kerja Terhadap Prestasi Kerja Karyawan Pada PT. PLN (Persero) APJ Semarang Pengembangan Pariwisata Berbasis Budaya dan Kearifan Lokal More cited articles

Last update:

The Impact of Profitability and Good Corporate Governance on Tax Avoidance of Food and Beverage Companies
Maulidya Puteri, Hanna Tiyandelina, Aoliyah Firasati. Pamukkale Üniversitesi İşletme Araştırmaları Dergisi, 11 (1), 2024. doi: 10.47097/piar.1484553
Menelaah Dinamika Leverage, Tata Kelola Perusahaan, dan Atribut Perusahaan dalam Membentuk Penghindaran Pajak di Kalangan Perusahaan yang Terdaftar di LQ45
Mey Ayu Lestari, Dwi Anjarningsih. Jurnal Inovasi Pajak Indonesia, 1 (2), 2024. doi: 10.69725/jipi.v1i2.112
Financial attributes and corporate tax planning of listed manufacturing firms in Nigeria: moderating role of real earnings management
Udisifan Michael Tanko. Journal of Financial Reporting and Accounting, 2023. doi: 10.1108/JFRA-05-2022-0198
FACTORS AFFECTING THE COMPANY’S VALUE WITH TAX AVOIDANCE AS INTERVENING VARIABLE
Millesya Lim, Galumbang Hutagalung, Rasinta Ria Ginting. Економіка та суспільство, 2024. doi: 10.32782/2524-0072/2024-64-128
Determinants of effective tax rates of public enterprises as an indication of tax avoidance on profit tax
Goranka Knežević, Vladimir Ristanović, Vladan Pavlović. Pravo - teorija i praksa, 41 (2), 2024. doi: 10.5937/ptp2402076K

Last update: 2024-11-20 03:55:07

No citation recorded.

Starting from 2022, the author(s) whose article is published in the Jurnal Administrasi Bisnis (JAB) attain the copyright for their article and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. By submitting the manuscript to JAB, the author(s) agree with this policy. No special document approval is required.

The author(s) guarantee that:

their article is original, written by the mentioned author(s),
has never been published before,
does not contain statements that violate the law, and
does not violate the rights of others, is subject to copyright held exclusively by the author(s), and is free from the rights of third parties, and that the necessary written permission to quote from other sources has been obtained by the author(s).

The author(s) retain all rights to the published work, such as (but not limited to) the following rights:

Copyright and other proprietary rights related to the article, such as patents,
The right to use the substance of the article in its own future works, including lectures and books,
The right to reproduce the article for its own purposes,
The right to archive all versions of the article in any repository, and
The right to enter into separate additional contractual arrangements for the non-exclusive distribution of published versions of the article (for example, posting them to institutional repositories or publishing them in a book), acknowledging its initial publication in this journal (Jurnal Administrasi Bisnis).

Suppose the article was prepared jointly by more than one author. Each author submitting the manuscript warrants that all co-authors have given their permission to agree to copyright and license notices (agreements) on their behalf and notify co-authors of the terms of this policy. Jurnal Administrasi Bisnis (JAB) will not be held responsible for anything that may arise because of the writer's internal dispute. Jurnal Administrasi Bisnis (JAB) will only communicate with correspondence authors.

Authors should also understand that their articles (and any additional files, including data sets, and analysis/computation data) will become publicly available once published. The license of published articles (and additional data) will be governed by a Creative Commons Attribution-ShareAlike 4.0 International License. Jurnal Administrasi Bisnis (JAB) allows users to copy, distribute, display and perform work under license. Users need to attribute the author(s) and Jurnal Administrasi Bisnis (JAB) to distribute works in journals and other publication media. Unless otherwise stated, the author(s) is a public entity as soon as the article is published.