Effect of Board size and Institutional Ownership on Corporate Tax Avoidance of Listed Money Banks in Nigeria
DOI:
https://doi.org/10.61143/umyu-jafr.8(1)2025.004Keywords:
Corporate governance, board size, institutional ownership and tax avoidanceAbstract
This study examines the effect board size and institutional ownership, and corporate tax avoidance among deposit money banks in Nigeria. From 2015 to 2021, the research posits that effective tax rates (ETR) serve as a proxy for tax avoidance. The findings reveal that board size does not significantly influence tax avoidance, indicating that larger boards do not necessarily lead to increased tax avoidance efficiency. Institutional ownership presents a positive but statistically insignificant relationship with tax avoidance, suggesting that while institutional shareholders may influence tax avoidance, their impact remains weak. These results lead to the conclusion that corporate governance mechanisms among deposit money banks in Nigeria, as measured by board size and institutional ownership, do not substantively affect tax avoidance behaviors. Therefore, regulatory bodies should enhance corporate governance frameworks and monitor banking operations to mitigate tax avoidance, while exploring other governance attributes that may have a more pronounced effect on tax planning outcomes.
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