Journal • CITN Journal

Editorial Board

Editor-in-Chief

Professor Rafiu Oyesola Salawu

Department of Management & Accounting, Faculty of Administration, Obafemi Awolowo University, Ile-Ife

Managing Editor

Professor Godwin Emmanuel Oyedokun

Department of Management & Accounting, Lead City University, Ibadan, Nigeria

Editorial Board Secretary

Mary-Fidelis Chidoziem Abiahu

Director, Research and Professional Standard, Chartered Institute of Taxation of Nigeria

Editorial Board Members

Professor Chinedum Nathaniel Nwezeaku

Federal University of Technology, Owerri

Professor John Adeoti

Nigeria Institute of Social and Economic Research (NISER), Ibadan

Professor Uche Jack-Osimiri

Faculty of Law, River State University, Port Harcourt

Professor Aruwa Suleiman Akwu-Odo Salihu

Nasarawa State University, Keffi Nasarawa State Nigeria

Dr. Eiya Ofiafoh Ofiafoh (Associate Professor)

Department of Accounting, University of Benin, Benin City, Nigeria

Dr. Stephen Chukwuemeka Mark Abani

MCSA Worldwide Projects Limited, Abuja, Nigeria

Dr. Kenny Adedapo Soyemi

Department of Accounting, Olabisi Onabanjo University, Ago Iwoye, Ogun State, Nigeria

Professor Joseph Uchenna Uwaleke

Department of Banking & Finance, Nasarawa State University, Keffi Nasarawa State, Nigeria

Barrister Chukwuemeka Eze

Faculty of Law, Nasarawa State University, Keffi Nasarawa State, Nigeria

Mr. Simon Nwanmaghyi Kato

Federal Inland Revenue Service, Chairman’s Office, Abuja, Nigeria

AUDIT COMMITTEE EFFECTIVENESS, RISK COMMITTEE PRESENCE AND TAX AGGRESSIVENESS IN LISTED NON-FINANCIAL FIRMS IN NIGERIA

Description

AUDIT COMMITTEE EFFECTIVENESS, RISK COMMITTEE PRESENCE AND TAX AGGRESSIVENESS IN LISTED NON-FINANCIAL FIRMS IN NIGERIA

Authors

Dick O. Irri, Suleiman A. S. Aruwa and Mohammed A. Mainoma

Abstract

The objective of this study is to investigate the effect of audit committee effectiveness and risk committee presence on tax aggressiveness in non-financial firms listed in Nigeria. Using a correlational design, a sample of 80 companies for a period of 12 years (2008-2019) was selected from a target population of 98 listed non-financial services firms. Tax aggressiveness (TAXAGG) was measured using the cash flow effective tax rate while Audit Committee Effectiveness was measured using the sum of four attributes of audit committee (size, independence, meetings, and financial expertise) and risk committee was measured using a dummy representing 1 for presence of risk management committee or chief risk officer; otherwise, 0. Censored tobit regression technique was used to analyse the data. The findings showed that audit committee effectiveness (ACEFF) and risk committee presence both have significant effect on tax aggressiveness. The study therefore concludes that audit committee effectiveness and risk committee presence are significant corporate governance attributes that can be utilised in mitigating tax aggressiveness. The study recommends among others that audit committees of listed non-financial services firms in Nigeria should be strengthened to sustain their effectiveness. In addition, steps should be taken to ensure that risk management committees are not just established but that proper steps to assess and mitigate the impact of identified risks through monitoring and managing of company risk profile is given serious attention

Keywords: