MODERATING EFFECT OF BOARD-DIVERSITY ON THE RELATIONSHIP BETWEEN TAX PLANNING AND FINANCIAL PERFORMANCE OF LISTED CONGLOMERATE FIRMS IN NIGERIA

MODERATING EFFECT OF
BOARD-DIVERSITY ON THE
RELATIONSHIP BETWEEN
TAX PLANNING AND
FINANCIAL PERFORMANCE
OF LISTED CONGLOMERATE
FIRMS IN NIGERIA
UMAR DAUDA
DEPARTMENT OF ACCOUNTING, FACULTY
OF SOCIAL AND
MANAGEMENT SCIENCES BAYERO
UNIVERSITY, KANO
A SYNOPSIS FOR A PROPOSED
DOCTORAL RESEARCH
The study intends to examine the
moderating effect of Board Diversity
on
the
relationship
between
Corporate Tax Planning and Financial
Performance. It is a motivation from
the previous studies that investigated
the direct relationship between Tax
Planning and Financial Performance
(Junaidu & Hauwa, 2018;
Otieno, 2018; Samuel, 2017; Ahmad, &
Khaoula, 2013; Nekesa, Gregory &
Elizabeth, 2017; Seyram & Holy 2014;
Sathaya, & Thatphong, 2019) It has been an
obvious fact that, firms’ performance is the
focal point of evaluation by investors
especially those who holds significant stake
when assessing the overall operations carried
out with their funds. This is fundamental
because, financial performance is perceived
(Farah, Farrukh, & Faizan, 2016; Georgeta, &
Elena, 2015) to be a measure of how well a
firm can use its assets in its core business to
generate revenues (Ahmad & Hussein 2017).
It is a scale upon which the general financial
productivity of an organization over a span of
financial period can be assessed and also aids
in comparison of financial results of other
firms (normally those that operates on the
same parameters). This study proposed to
use Return on assets (ROA) and Return on
Equity (ROE) as accounting base whereas
Price Earnings Ratio (PAR) will serve as the
market base measures of Financial
Performance. This is in line with the view of
Nanik, & Ratna, (2015).
Literature
have
documented
some
contributions on the impact of corporate Tax
Planning on the activities of corporate
entities decades ago (Stiglitz, 1985; King,
1974 & Boadway, 1979) however, most of
these studies concentrated on determining
the effects of tax on investment decisions.
However, in recent time there have been
shift in attention with many studies
examining the relationship between tax
planning and financial performance of firms,
ranging from tax planning on net income
and output (Valentīna, Juruss, Laizans, &
Roberts, 2018), tax planning and overall
profitability (Gurria, 2009 and Yonah, 2006),
coporate tax and investments portfolio
(Samuel, 2017) and Coelho & Antonio (2014)
strictly examined the impact of corporate
tax planning on firms’ financial performance
and found direct positive relationship.

Leave a Reply

Your email address will not be published. Required fields are marked *