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Non-Linearity in Determinants of Corporate Effective Tax Rate: Further Evidence from Nigeria

Author

Listed:
  • Yinka Mashood Salaudeen*

    (Department of Accounting, University of Abuja, Abuja, Nigeria)

  • Rafiu Olayinka Akano

    (Department of Statistics, University of Abuja, Abuja, Nigeria)

Abstract

This study employs quantile regression analysis to examine possible non-linearity in the determinants of corporate effective tax rate (ETR). The results generally indicate that the examined determinants have significant impact on ETR along the decides and confirm non-linearity in the distribution of ETR. Firm size, firm leverage and inventory intensity are most influential variables while capital intensity and profitability are fairly influential across the ETR of firms. However, tax expert, firm size and inventory intensity are the most influential for firms with lower ETR. The study also confirms that large firms enjoy political clout but smaller firms are also able to reduce their fiscal pressure. The influence of human controllable factors is also evident in the study.

Suggested Citation

  • Yinka Mashood Salaudeen* & Rafiu Olayinka Akano, 2018. "Non-Linearity in Determinants of Corporate Effective Tax Rate: Further Evidence from Nigeria," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 4(3), pages 56-63, 03-2018.
    • Handle: RePEc:arp:ijefrr:2018:p:56-63
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    References listed on IDEAS

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