Corporate Tax Planning and Financial Performance of Listed Deposit Money Banksin Nigeria

Abstract

This study examined corporate tax planning and financial performance of Listed Deposit Money Banks, specifically Systemically Important Banks (SIBs) in Nigeria. An ex-post facto research design was adopted. The data covered the period from 2008 to 2022. Panel Multiple Ordinary Least Square Regression was adopted after the data was subjected to Cross Section Dependency Tests, unit root tests and the Hausman Test. The study found that Effective tax rate and capital intensity both have a negative and significant influence on return on asset with a probability value of 0.0480 and 0.0492, respectively, while thin capitalization has no significant effect on return on asset. It was recommended, among others, that systematically important banks in Nigeria should include continuous reduction in their effective tax rate as part of the firm's strategic financial planning and effectively utilize all tax planning strategies available to improve their return on assets.