Effect of Board Attributes on Tax Planning Among Listed Non-Financial Firms in Nigeria

Abstract

The research was motivated by persistent concerns over the ineffectiveness of governance structures in curbing aggressive tax behavior despite the implementation of corporate governance codes. The main objective was to examine the effect of board attributes on tax planning, while the specific objectives focused on assessing the individual effects of board size, independence, and gender diversity on book-tax differences. The study adopted an ex post facto research design and relied exclusively on secondary data extracted from the annual reports and financial statements of listed firms obtained from the Nigerian Exchange Group. The population consisted of 71 non-financial firms, from which a sample of 60 firms was determined using the Taro Yamane formula, but 10 firms were finally selected based on data availability, sectoral representation, and market capitalization. The data, covering the period 2015–2024, were analyzed using EViews 10 statistical software. Findings revealed that board size had no significant impact on tax planning, while board independence had a significant negative relationship, indicating that independent directors effectively restrained aggressive tax practices. Gender diversity showed a marginally significant negative relationship, suggesting its potential to foster ethical tax behavior. The study concluded that board independence was the most influential attribute in promoting responsible tax planning. It recommended that firms prioritize director competence over numerical expansion, strengthen board independence for effective oversight, and enhance gender diversity to encourage ethical and transparent corporate governance practices.