FIRM ATTRIBUTES AND TAX AGGRESSIVENESS: A COMPARATIVE ANALYSIS BETWEEN NIGERIA AND GHANA

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Abstract

This study investigated firm-specific attributes influencing tax aggressiveness within the banking sector, comparing the behaviors of Deposit Money Banks (DMBs) in Nigeria and Ghana. Drawing on agency theory and tax planning theory, the research examined the effects of firm size, profitability, leverage, liquidity, and age on effective tax rates, leveraging panel data spanning a decade (2014–2023).

The findings revealed cross-country disparities in the impact of firm attributes on tax aggressiveness. In Nigeria, bank profitability, liquidity, and leverage significantly drive tax aggressiveness, while larger banks exhibit a conservative approach. Conversely, in Ghana, larger banks and liquidity positively influence tax aggressiveness, but bank age and leverage demonstrate a negative relationship. These outcomes underscored the influence of national regulatory environments on tax planning behaviors.

By contrasting Nigerian and Ghanaian DMBs, this paper sheds light on regional differences in corporate tax strategies and offers insights into how firm characteristics and contextual factors shape tax aggressiveness.

Keywords

Tax Aggressiveness, Bank Size, Bank Profitability, Bank Age, Bank Liquidity, Bank Financial Leverage

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How to Cite

ADEDIPE Oluwaseyi Ayodele; ATANDA Kolawole. (2025). "FIRM ATTRIBUTES AND TAX AGGRESSIVENESS: A COMPARATIVE ANALYSIS BETWEEN NIGERIA AND GHANA." ESUI Business and Management Journal, 2(1), 136-148.

Publication Timeline

  • Received: March 27, 2025
  • Accepted: March 27, 2025
  • Published: March 27, 2025
  • Last Updated: April 19, 2026