Using Unobserved Effects Model to Analyse the Relationship Between Audit Committee Qualities and Tax Engineering of Listed Firms in Nigeria
DOI:
https://doi.org/10.64321/jcr.v3i3.08Keywords:
Audit Committee, Tax Aggressiveness, Gender Diversity, Meeting Frequency, ExpertiseAbstract
This research examines how audit committee features impact tax aggressiveness in Nigerian publicly traded firms. It explores how independence, competence, gender diversity, and meeting frequency affect book-tax differential. The investigation was longitudinal. The research population includes 155 Nigerian Exchange Group (NXG) Plc-listed enterprises. Ninety-two Nigerian publicly listed firms were sampled using judgement and filter criteria. The annual reports and accounts of 92 Nigerian Exchange Group Plc enterprises from 2015 to 2024 provided 920 secondary data points. Data were examined using the Unobserved Effects Model (fixed and random effects) using pooled OLS and Hausman specification tests. The frequency of audit committee meetings was not significantly linked with the tax aggression of listed corporations in Nigeria. Nevertheless, the audit committee's independence, competence, and gender diversity were demonstrated to be inversely related. The study recommends mandating professional qualifications for audit committees, promoting gender diversity, increasing independent directors, improving ethical tax behaviour in Nigeria, and dedicating structured time to tax-risk management at meetings.
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