EFFECT OF CORPORATE TAX AGGRESSIVENESS STRATEGIES ON FIRM GROWTH IN NIGERIA

Abstract

This research study critically assessed the effect of Corporate Tax Aggressiveness Strategies on Firm Growth in Nigeria. The study adopted an ex-facto research design, which is proxy by tax aggressiveness which has four dependent variables and four hypotheses, which were formulated in line with the four objectives of the study.
The study sampled Deposit Money Banks in Nigeria from 2013-2023 as to select a representative of the Sample, the data were obtained from annual report/account of the Deposit money banks under study, as was listed in the Nigeria Exchange Group (NGX). Data obtained from Secondary sources were analyzed by the use of financial ratio using descriptive and inferential statistical analyses. E-View was used as a statistical test tool. The results of the study showed that effective tax rate strategy had positive and significant effect, firm size tax strategy had negative and insignificant effect, book value tax strategy had positive and significant effect and market value tax strategy had positive and significant effect on the growth of Deposit Money Banks in Nigeria. The study concluded that book tax difference, effective tax rate, and market value had positive and significant effect on the growth of Deposit Money Banks in Nigeria. The study therefore, recommended that Deposit Money Banks in Nigeria should at all time adopt measures that would increase the market value of their shares as this measure will help to enhance the growth of their banks. In conclusion, Deposit Money Banks in Nigeria should avoid the use /adoption of firm size as a strategy to enhance firm growth, since it was found to have negative impact to the growth of Deposit Money Banks studied.