Tax aggressiveness and timeliness of financial reporting in Nigeria financial sector
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Date
2021
Authors
Asiriuwa, O.
Adeyemi, S. B.
Uwuigbe, O. R.
Uwuigbe, U.
Ozordi, E.
Journal Title
Journal ISSN
Volume Title
Publisher
Academy of Accounting and Financial Studies Journal
Abstract
This research explores the effect of tax aggressiveness on the timeliness of financial
reporting. This research, comprising a survey of 50 companies operating in Nigeria's
financial sector, gained insights from the stakeholders’ theory to investigate the impact of tax
aggressiveness on the timeliness of financial reporting. Tax aggressiveness was measured
using variables such as tax avoidance, taxable income, book-tax difference and book effective
tax rate. We analysed the data using the logistics regression method. Empirically, the results
showed that there is a significant positive association between the tax avoidance and the
timeliness of financial reporting. Taxable income revealed a positive and significant
relationship with timeliness of financial reporting. Book-tax difference indicates a negative
and an insignificant relationship to the financial reporting timeliness. While, book effective
tax rate revealed a positive and insignificant association with the timeliness of financial
reporting. Overall, this indicates that Nigerian financial firms' tax aggressiveness has a
bigger effect on the timeliness of financial statements. It therefore recommends that
corporate strategies and policies should take into account the tax planning and structure
when drawing up the company’s strategic framework.
Description
Taxation
Keywords
tax aggressiveness , timeliness of financial reporting , tax avoidance , book effective tax rate , stakeholders theory
Citation
Asiriuwa, O., Adeyemi, S.B., Uwuigbe, O.R., Uwuigbe, U., & Ozordi, E. (2021). Tax aggressiveness and timeliness of financial reporting in Nigeria financial sector. Academy of Accounting and Financial Studies Journal, 25(6), 1-11