Effect of Tax Planning on Firm Value of Quoted Consumer Goods Manufacturing Firms in Nigeria

Umeh Valentine Chukwudi; Okegbe Theophius Okonkwo; Ezejiofor Raymond Asika

doi:doi:10.11648/j.ijfbr.20200601.11

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Effect of Tax Planning on Firm Value of Quoted Consumer Goods Manufacturing Firms in Nigeria

Umeh Valentine Chukwudi, Okegbe Theophius Okonkwo, Ezejiofor Raymond Asika

Published in International Journal of Finance and Banking Research (Volume 6, Issue 1)

Received: 4 December 2019 Accepted: 6 January 2020 Published: 21 January 2020

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Abstract

This study determined the effect of tax planning on firm value in quoted consumer goods manufacturing firms in Nigeria. The specific objectives are to: Determine the effect of Effective Tax Rate (ETR) on firm value of Nigerian consumer goods manufacturing companies; Ascertain the effect of Book Tax Differences (BTDs) on the firm value of Nigerian consumer goods manufacturing companies. Ex-post facto research design was adopted for the study. A sample size 21 of firms was selected based on availability of the financial statement of the selected firms from the population of all the non-financial quoted on the Nigeria Stock Exchange. Data for the study will be obtained from annual published financial of the non-financial covering a period of ten years from 2009-2018. Ordinary lease square regression was used to test the three formulated hypotheses with the aid of E-View 9.0. This study found that Effective tax rate (ETR) to impact negatively on firm value, but this impact was statistically significant. However, the study found that, book tax difference (BTD); impact positively on firm value, but this impact was not statistically significant. The study therefore recommended among others that since the influence of effective tax rate is statistically significant and so, should be used as a determinant of firm value in Nigeria. Therefore on the basis of efficient use of tax rate to generate growth should be encouraged.

Published in	International Journal of Finance and Banking Research (Volume 6, Issue 1)
DOI	10.11648/j.ijfbr.20200601.11
Page(s)	1-10
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Tax Planning, Firm Value, Tax Rate

References

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APA Style

Umeh Valentine Chukwudi, Okegbe Theophius Okonkwo, Ezejiofor Raymond Asika. (2020). Effect of Tax Planning on Firm Value of Quoted Consumer Goods Manufacturing Firms in Nigeria. International Journal of Finance and Banking Research, 6(1), 1-10. https://doi.org/10.11648/j.ijfbr.20200601.11

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ACS Style

Umeh Valentine Chukwudi; Okegbe Theophius Okonkwo; Ezejiofor Raymond Asika. Effect of Tax Planning on Firm Value of Quoted Consumer Goods Manufacturing Firms in Nigeria. Int. J. Finance Bank. Res. 2020, 6(1), 1-10. doi: 10.11648/j.ijfbr.20200601.11

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AMA Style

Umeh Valentine Chukwudi, Okegbe Theophius Okonkwo, Ezejiofor Raymond Asika. Effect of Tax Planning on Firm Value of Quoted Consumer Goods Manufacturing Firms in Nigeria. Int J Finance Bank Res. 2020;6(1):1-10. doi: 10.11648/j.ijfbr.20200601.11

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@article{10.11648/j.ijfbr.20200601.11,
  author = {Umeh Valentine Chukwudi and Okegbe Theophius Okonkwo and Ezejiofor Raymond Asika},
  title = {Effect of Tax Planning on Firm Value of Quoted Consumer Goods Manufacturing Firms in Nigeria},
  journal = {International Journal of Finance and Banking Research},
  volume = {6},
  number = {1},
  pages = {1-10},
  doi = {10.11648/j.ijfbr.20200601.11},
  url = {https://doi.org/10.11648/j.ijfbr.20200601.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20200601.11},
  abstract = {This study determined the effect of tax planning on firm value in quoted consumer goods manufacturing firms in Nigeria. The specific objectives are to: Determine the effect of Effective Tax Rate (ETR) on firm value of Nigerian consumer goods manufacturing companies; Ascertain the effect of Book Tax Differences (BTDs) on the firm value of Nigerian consumer goods manufacturing companies. Ex-post facto research design was adopted for the study. A sample size 21 of firms was selected based on availability of the financial statement of the selected firms from the population of all the non-financial quoted on the Nigeria Stock Exchange. Data for the study will be obtained from annual published financial of the non-financial covering a period of ten years from 2009-2018. Ordinary lease square regression was used to test the three formulated hypotheses with the aid of E-View 9.0. This study found that Effective tax rate (ETR) to impact negatively on firm value, but this impact was statistically significant. However, the study found that, book tax difference (BTD); impact positively on firm value, but this impact was not statistically significant. The study therefore recommended among others that since the influence of effective tax rate is statistically significant and so, should be used as a determinant of firm value in Nigeria. Therefore on the basis of efficient use of tax rate to generate growth should be encouraged.},
 year = {2020}
}

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TY  - JOUR
T1  - Effect of Tax Planning on Firm Value of Quoted Consumer Goods Manufacturing Firms in Nigeria
AU  - Umeh Valentine Chukwudi
AU  - Okegbe Theophius Okonkwo
AU  - Ezejiofor Raymond Asika
Y1  - 2020/01/21
PY  - 2020
N1  - https://doi.org/10.11648/j.ijfbr.20200601.11
DO  - 10.11648/j.ijfbr.20200601.11
T2  - International Journal of Finance and Banking Research
JF  - International Journal of Finance and Banking Research
JO  - International Journal of Finance and Banking Research
SP  - 1
EP  - 10
PB  - Science Publishing Group
SN  - 2472-2278
UR  - https://doi.org/10.11648/j.ijfbr.20200601.11
AB  - This study determined the effect of tax planning on firm value in quoted consumer goods manufacturing firms in Nigeria. The specific objectives are to: Determine the effect of Effective Tax Rate (ETR) on firm value of Nigerian consumer goods manufacturing companies; Ascertain the effect of Book Tax Differences (BTDs) on the firm value of Nigerian consumer goods manufacturing companies. Ex-post facto research design was adopted for the study. A sample size 21 of firms was selected based on availability of the financial statement of the selected firms from the population of all the non-financial quoted on the Nigeria Stock Exchange. Data for the study will be obtained from annual published financial of the non-financial covering a period of ten years from 2009-2018. Ordinary lease square regression was used to test the three formulated hypotheses with the aid of E-View 9.0. This study found that Effective tax rate (ETR) to impact negatively on firm value, but this impact was statistically significant. However, the study found that, book tax difference (BTD); impact positively on firm value, but this impact was not statistically significant. The study therefore recommended among others that since the influence of effective tax rate is statistically significant and so, should be used as a determinant of firm value in Nigeria. Therefore on the basis of efficient use of tax rate to generate growth should be encouraged.
VL  - 6
IS  - 1
ER  -

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Author Information

Umeh Valentine Chukwudi

Department of Accountancy, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria
Okegbe Theophius Okonkwo

Department of Accountancy, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria
Ezejiofor Raymond Asika

Department of Accountancy, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria

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APA Style

Umeh Valentine Chukwudi, Okegbe Theophius Okonkwo, Ezejiofor Raymond Asika. (2020). Effect of Tax Planning on Firm Value of Quoted Consumer Goods Manufacturing Firms in Nigeria. International Journal of Finance and Banking Research, 6(1), 1-10. https://doi.org/10.11648/j.ijfbr.20200601.11

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ACS Style

Umeh Valentine Chukwudi; Okegbe Theophius Okonkwo; Ezejiofor Raymond Asika. Effect of Tax Planning on Firm Value of Quoted Consumer Goods Manufacturing Firms in Nigeria. Int. J. Finance Bank. Res. 2020, 6(1), 1-10. doi: 10.11648/j.ijfbr.20200601.11

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AMA Style

Umeh Valentine Chukwudi, Okegbe Theophius Okonkwo, Ezejiofor Raymond Asika. Effect of Tax Planning on Firm Value of Quoted Consumer Goods Manufacturing Firms in Nigeria. Int J Finance Bank Res. 2020;6(1):1-10. doi: 10.11648/j.ijfbr.20200601.11

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@article{10.11648/j.ijfbr.20200601.11,
  author = {Umeh Valentine Chukwudi and Okegbe Theophius Okonkwo and Ezejiofor Raymond Asika},
  title = {Effect of Tax Planning on Firm Value of Quoted Consumer Goods Manufacturing Firms in Nigeria},
  journal = {International Journal of Finance and Banking Research},
  volume = {6},
  number = {1},
  pages = {1-10},
  doi = {10.11648/j.ijfbr.20200601.11},
  url = {https://doi.org/10.11648/j.ijfbr.20200601.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20200601.11},
  abstract = {This study determined the effect of tax planning on firm value in quoted consumer goods manufacturing firms in Nigeria. The specific objectives are to: Determine the effect of Effective Tax Rate (ETR) on firm value of Nigerian consumer goods manufacturing companies; Ascertain the effect of Book Tax Differences (BTDs) on the firm value of Nigerian consumer goods manufacturing companies. Ex-post facto research design was adopted for the study. A sample size 21 of firms was selected based on availability of the financial statement of the selected firms from the population of all the non-financial quoted on the Nigeria Stock Exchange. Data for the study will be obtained from annual published financial of the non-financial covering a period of ten years from 2009-2018. Ordinary lease square regression was used to test the three formulated hypotheses with the aid of E-View 9.0. This study found that Effective tax rate (ETR) to impact negatively on firm value, but this impact was statistically significant. However, the study found that, book tax difference (BTD); impact positively on firm value, but this impact was not statistically significant. The study therefore recommended among others that since the influence of effective tax rate is statistically significant and so, should be used as a determinant of firm value in Nigeria. Therefore on the basis of efficient use of tax rate to generate growth should be encouraged.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - Effect of Tax Planning on Firm Value of Quoted Consumer Goods Manufacturing Firms in Nigeria
AU  - Umeh Valentine Chukwudi
AU  - Okegbe Theophius Okonkwo
AU  - Ezejiofor Raymond Asika
Y1  - 2020/01/21
PY  - 2020
N1  - https://doi.org/10.11648/j.ijfbr.20200601.11
DO  - 10.11648/j.ijfbr.20200601.11
T2  - International Journal of Finance and Banking Research
JF  - International Journal of Finance and Banking Research
JO  - International Journal of Finance and Banking Research
SP  - 1
EP  - 10
PB  - Science Publishing Group
SN  - 2472-2278
UR  - https://doi.org/10.11648/j.ijfbr.20200601.11
AB  - This study determined the effect of tax planning on firm value in quoted consumer goods manufacturing firms in Nigeria. The specific objectives are to: Determine the effect of Effective Tax Rate (ETR) on firm value of Nigerian consumer goods manufacturing companies; Ascertain the effect of Book Tax Differences (BTDs) on the firm value of Nigerian consumer goods manufacturing companies. Ex-post facto research design was adopted for the study. A sample size 21 of firms was selected based on availability of the financial statement of the selected firms from the population of all the non-financial quoted on the Nigeria Stock Exchange. Data for the study will be obtained from annual published financial of the non-financial covering a period of ten years from 2009-2018. Ordinary lease square regression was used to test the three formulated hypotheses with the aid of E-View 9.0. This study found that Effective tax rate (ETR) to impact negatively on firm value, but this impact was statistically significant. However, the study found that, book tax difference (BTD); impact positively on firm value, but this impact was not statistically significant. The study therefore recommended among others that since the influence of effective tax rate is statistically significant and so, should be used as a determinant of firm value in Nigeria. Therefore on the basis of efficient use of tax rate to generate growth should be encouraged.
VL  - 6
IS  - 1
ER  -

Copy | Download