BOARD CHARACTERISTICS AND TAX SHELTERING OF LISTED CONSUMER GOODS FIRMS IN NIGERIA

Abstract

Tax is an important source of revenue to any government; however, the amount of tax paid by consumer goods firms in Nigeria is sometimes low due to firms’ tax sheltering activities. The study therefore investigates how board characteristics influence tax sheltering practices among listed consumer goods firms in Nigeria. The study adopts an ex-post factor research design because historical data were utilized. The population of the study comprised all 21 consumer goods firms listed in Nigeria as at 31 December 2024. Using a purposeful sampling technique and based on data availability, the study covered 13 firms. Secondary data covering a ten-year period (2015 to 2024) were sourced from the annual reports of the sampled firms. Descriptive and regression analyses were conducted using STATA 13 statistical software. The results show that board gender diversity has positive significance effect on tax sheltering (coeff. 0.411, P-value 0.038), board meetings have a positive and statistically significant effect on tax sheltering (coeff. 0.0512, P-value 0.018), board size exhibits a negative but insignificant effect (coeff. 0.004, P-value 0.619), while board independence shows a positive insignificant effect on tax sheltering (coeff. 0.122, P-value 0.301). Based on its findings, the study concludes that board characteristics exert a meaningful influence on tax sheltering practices among listed consumer goods firms in Nigeria. Based on its conclusion, the study recommends that listed consumer goods firms in Nigeria should complement increased female board representation and frequent board meetings with robust board-level tax governance, including clear tax planning limits, periodic compliance reviews, and transparent documentation of tax decisions, while regulators strengthen monitoring and enforcement of corporate reporting practices.