Effect of Tax Planning on Firm Value of Quoted Consumer Goods Manufacturing Firms in Nigeria

Chukwudi, Umeh Valentine; Okonkwo, Okegbe Theophius; Asika, Ezejiofor Raymond

doi:10.11648/j.ijfbr.20200601.11

Cited by 9 publications

(4 citation statements)

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“…It is suggestive of a loophole in tax law that has created an opportunity for tax planners to be used for the company's good. Research conducted by Chukwudi et al (2020), Vu and Le (2021), and Zahra and Fidiana (2022) states that the effective tax rate (ETR) negatively impacts the company's value, but this impact is statistically significant. More detail, when state ownership is the moderator, the association is not a variable in its direction.…”

Section: Effect Of Tax Planning On Firm Valuementioning

confidence: 99%

The effect of tax planning activities and firm characteristic: Evidence from Indonesia

Tanujaya

Lius

2023

AKURASI

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This study's purpose of contributing to the literature by empirically examining the effect of tax planning, activities, financial debt, audit quality, and firm investment on the firm value. This study adopts quantitative method research using panel regression with 1,264 data samples for model 1 and 1,291 data samples for model 2 with observation year from 2017-2021. This study shows that audit quality and tax planning have a significant positive impact on firm value. In contrast to firm investment, financial debt has a significant negative effect on firm value, which has insignificant results. This research contribution is that companies should pay attention to the selection of auditors for a financial audit because the auditor's role has a positive impact on the firm value. Also, investors can see the value of companies eligible for investment considering the tax planning activities in advance of the company carried out. The novelty of this research is the use of measurement of tax per share for tax planning, rarely used by the other researcher in conducting a relationship between firm value and tax planning. Public interest statement This study is necessary because the auditor's role is critical in minimizing the profit-making practices of managers and ensuring the quality of corporate earnings reporting. Investors can also pay attention to the value of a company worth investing in by paying attention to the tax planning activities undertaken by a company. Article history Received 26 Nov 2022 | Revised 10 Jan 2023 | Accepted 11 Jan 2023 | Online First 03 Feb 2023

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Section: Effect Of Tax Planning On Firm Valuementioning

confidence: 99%

The effect of tax planning activities and firm characteristic: Evidence from Indonesia

Tanujaya

Lius

2023

AKURASI

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“…Untuk mengoptimalkan nilai entitasnya, perusahaan harus memiliki tujuan jangka panjang [2]. Peningkatan nilai perusahaan dilakukan dengan menggambarkan kondisi pertumbuhan dan kinerja manajemen dalam suatu perusahaan [3]. Sebuah valuasi perusahaan yang tinggi mencerminkan persepsi positif pasar terhadap perusahaan, yang kemudian dapat mengundang lebih banyak perhatian investor untuk menyuntikkan modal dalam entitas tersebut [4].…”

Section: Pendahuluanunclassified

Pengaruh Manajemen Risiko Korporasi, Perputaran Persediaan, Profitabilitas, dan Ukuran Perusahaan terhadap Nilai Perusahaan

Hermanto,

Margarena

2023

INFEB

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This test aims to identify the correlation between corporate risk management, inventory turnover, profitability, and firm size with firm value. This study uses data collected from the financial statements of the food and beverage sub-sector listed on the Indonesia Stock Exchange during the research period 2016-2022. The purposive sampling method was carried out with exploratory steps, where this study took 63 samples from a total of 9 companies and reduced after testing several criteria to 6 companies so that the total sample studied was 42 samples over a 7-year period in accordance with the research criteria. The results showed that corporate risk management has no correlation to firm value, inventory turnover has no effect on firm value, while profitability has a positive influence on firm value, and firm size has no correlation to firm value.

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“…In determining effective tax rate, the total tax is expressed as a proportion of total income that has been subjected to tax. According to Chukwudi et al (2020), this method is used to measure the quantum individuals, firms or corporate bodies remit in taxes as a proportion of their pre-tax incomes. For an individual, the ETR is an average amount at which individuals are taxed, and it is gotten by expressing total tax as a ratio of income tax while for a firm, it involves the ratio of total taxes paid to pretax profit (Belz et al, 2018).…”

Section: Measures Of Tax Planningmentioning

confidence: 99%

The interplay of corporate tax planning and corporate governance on firm value: Evidence from listed NGX consumer goods firms

Abu

2022

Investment Management and Financial Innovations

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The study investigates the interactive impact of tax planning and CG on firm value of the listed Nigerian consumer goods firms by examining whether this relationship is further strengthened or weakened in the presence of strong corporate governance. From the population of the entire 21 consumer goods firms of the Nigerian Exchange (NGX), 19 firms with complete data were selected as a sample. Data were collected from the annual reports of these firms and both descriptive and inferential analyses were employed to estimate the relationship between the variables. Tax planning was measured using the effective tax rate and book-tax difference, firm value using Tobin’s q, while corporate governance was measured using board independence. The fixed effect panel regression was used to estimate the relationship. The study revealed a positive relationship between tax planning (for both proxies) and firm value although the relationship is statistically insignificant (p = 0.0981 and 0.387). Also, there is limited evidence to support the assertion that the interactive effect of tax planning and firm value is significantly moderated by corporate governance (p = 0.818). The combined implication is that evidence on the moderating effect of corporate governance on tax planning and firm value is limited and should be interpreted with caution suggesting that more empirical research should be carried out in this area. In addition, shareholders should demand more disclosure of tax-related matters as this will help prevent information asymmetry, improve monitoring, and increase the value effectiveness of tax planning.

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Effect of Tax Planning on Firm Value of Quoted Consumer Goods Manufacturing Firms in Nigeria

Cited by 9 publications

References 0 publications

The effect of tax planning activities and firm characteristic: Evidence from Indonesia

The effect of tax planning activities and firm characteristic: Evidence from Indonesia

Pengaruh Manajemen Risiko Korporasi, Perputaran Persediaan, Profitabilitas, dan Ukuran Perusahaan terhadap Nilai Perusahaan

The interplay of corporate tax planning and corporate governance on firm value: Evidence from listed NGX consumer goods firms

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