Corporate Tax Aggressiveness And Value of Listed Industrial Goods Firms in Nigeria

Abstract

The purpose of this study is to analyze the effect of corporate tax aggressiveness on the firm value of listed industrial goods. Both Long-Run Cash Effective Tax Rate (LRCETR) and Book-Tax Difference (BTD) were used as surrogates for tax aggressiveness while, market value of equity (MVE) was used to measure value. Correlational research design was employed while the quantitative data from the annual reports and accounts of the firms were analyzed using fixed effect regression. The results from the study revealed that a reduction in the proportion of the firms’ income paid as tax as well as increase in the book-tax gap, significantly improve the value of the firms. Also, it was found that an increase in the size of leverage significantly reduced the value of the studied firms. It is recommended among others that the firms should continue to increase the book-tax gap through, transfer payment, tax credit and investment in R&D to continue to signifi-cantly improve value.