Effect of tax planning on financial performance of listed conglomerate firms in Nigeria

Abstract

This study empirically examined the effect of Tax Planning on the financial performance of listed conglomerate firms in Nigeria. The study employed ex-post factor design. The population and sample of the study consist of six (6) listed conglomerate firms on the Nigerian Exchange Group as at 31st December, 2023. Secondary data were sourced from the annual reports and audited accounts of the selected firms. Secondary Data for a period of eleven (11) (2012-2022) years were collected and analyzed with the aid of STATA 14 version. Descriptive statistics, correlation and multiple regression analysis (OLS) was the technique employed for data analysis. Findings are made that thin Capitalization is negative and insignificantly associated with financial performance of listed conglomerate firms, whereas; capital intensity is negative and significantly associated with financial performance and finally Research and Development expenditure is positive but insignificantly associated with financial performance of listed conglomerate firms in Nigeria. The study recommends that conglomerate firms increase investment in capital assets to ensure a steadier efficiency in output which could translate to increase in their financial performance.