IDEAS home Printed from https://ideas.repec.org/a/dug/journl/y2022i2p138-152.html
   My bibliography  Save this article

Determinants of Corporate Actual Cash Taxes Paid: A New Insight from Nigeria

Author

Listed:
  • Etumudon Ndidi Asien

    (Federal University Otuoke)

Abstract

This study examines the hypotheses that revenues, profitability, intangible assets, and percentage of foreign shareholdings, external auditors, tax haven status and firm size do not associate with corporate actual cash taxes paid. The main results of pooled OLS multivariate regression suggest that revenue, intangible assets, and percentage of foreign shareholdings are directly and significantly associated with corporate actual cash taxes paid. In particular, revenues, intangible assets, and percentage of foreign shareholdings are found to increase corporate actual cash taxes paid, thereby leading to conservative tax planning schemes that reduce tax avoidance. The result also suggests that Big-4 accountancy firms, tax haven status and firm size are negatively and significantly associated with corporate actual cash taxes paid. Consequently, it is recommended that the Federal Inland Revenue Service should monitor the revenue and intangible assets of companies through their annual fillings. Another recommendation is that relevant government agencies should encourage foreign equity participation in Nigerian companies. Finally, they should collaborate to provide policy changes that would increase the participation of Non-Big-4 accounting firms in auditing companies’ financial statements in Nigeria.

Suggested Citation

  • Etumudon Ndidi Asien, 2022. "Determinants of Corporate Actual Cash Taxes Paid: A New Insight from Nigeria," EuroEconomica, Danubius University of Galati, issue 2(12), pages 138-152, August.
  • Handle: RePEc:dug:journl:y:2022:i:2:p:138-152
    as

    Download full text from publisher

    File URL: https://dj.univ-danubius.ro/index.php/JAM/article/view/1566/2176
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dug:journl:y:2022:i:2:p:138-152. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Florian Nuta (email available below). General contact details of provider: https://edirc.repec.org/data/fedanro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.