TAX SAVINGS AND FIRM GROWTH OF LISTED ICT FIRMS IN NIGERIA.

ABSTRACT The debate on the tax savings has continued unabated over time. This is in view of the importance of tax savings in the attainment of organizational objectives. Different studies have come out with contrasting findings on the effect of tax savings on firm growth. Consequently this study was carried out to examine the effect of tax savings on firms growth using ICT firms listed in Nigerian Exchange Group. The broad objective of this study was to examine the effect of tax savings on firm’s growth of ICT firms in Nigeria. The independent variables of the study were tax savings which was proxies by book tax difference, tax incentives, and effective tax rate, while the dependent variable was proxies by economic value. Ex-post-facto research design was adopted. The population of the study consisted of eight (8) listed ICT firms on the floor of Nigerian Exchange Group while the sample size of eight was taken. The data for the study were extracted from the annual reports and accounts of the sampled firms for the year 2014 to 2024. The data were analyzed with descriptive statistics, correlation panel least square regression technique. The result of the findings indicates that book tax difference, tax incentives and effective tax rate has a negative significant effect on firm growth of listed ICT firms in Nigeria. The study concluded that tax savings has a negative significant effect on firm growth of listed ICT firms in Nigeria. Based on the conclusion of study, it was recommended that managers of ICT firms should engage in tax planning that increases their permanent book tax difference using legal means that yield tax savings in order to enhance the firms financial condition.