Optimal Tax Behaviour and Corporate Survival: The Nigeria Experience

Joseph U. Madugba, Egbide Ben-Caleb, Uche Tony Agburuga, David, E. Obadiaru, Wilson U. Ani, Jane O. Ben-caleb


Every entity operates with the entity concept, which endues management to strategize for survival. This study examined optimal tax behaviour and corporate survival with a focus in Nigeria. Ex-post-facto was adopted and data computed from annual accounts of 52 out of 198 quoted companies were used. Descriptive Statistics, test of normality, outliers, and multi-collinearity tests were carried out to establish the normality of the data. Both fixed and random effects of the generalized least square multiple regressions were conducted and the outcome of the test showed that ETR is a positive but insignificant determinant of EPS while EATS were found to be a positive and significant determinants of EPS of companies in Nigeria. The study concluded that quoted companies are yet to effectively and efficiently explore loopholes in tax laws. The study recommended that companies in Nigeria should urgently explore these loopholes and improve their performance and experts with professional skills should be engaged as not infringe tax laws.

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DOI: https://doi.org/10.5430/rwe.v11n6p108

Research in World Economy
ISSN 1923-3981(Print)ISSN 1923-399X(Online)


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