EFFECT OF TAX AVOIDANCE ON MARKET VALUE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
Abstract
Abstract
Study Objective: The research investigated the impact of tax avoidance on the market value of listed Deposit Money Banks (DMBs) in Nigeria.
Methodology:
Sample: Nine listed Deposit Money Banks from the Nigerian Exchange Group.
Duration: The study covered a six-year period from 2017 to 2022.
Analysis: Multiple regression analysis was used to evaluate the relationship between the dependent variable (Market Share Price) and independent variables (Effective Tax Rate (ETR), Cash Effective Tax Rate (CETR), and Book Tax Difference (BTD)) at a 5% significance level.
Key Findings:
Effective Tax Rate (ETR): Had a negative and insignificant effect on market value.
Cash Effective Tax Rate (CETR): Had a positive and significant effect on market value.
Book Tax Difference (BTD): Had a positive and significant effect on market value.
Recommendation: The study recommends that Nigerian DMBs adopt effective tax planning strategies focused on managing cash-based tax payments (CETR) to enhance investor confidence and market performance.
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