Effect of corporate attributes and ownership structure on aggressive tax planning of listed multinationals firms in Nigeria

Abstract

Aggressive tax planning by multinational corporations (MNCs) poses a persistent threat to domestic revenue mobilization, fiscal sustainability, and tax equity in developing economies. In Nigeria, despite extensive tax reforms and alignment with global initiatives such as the OECD/G20 Base Erosion and Profit Shifting (BEPS) framework, multinational firms continue to exploit regulatory gaps through sophisticated tax avoidance strategies. While prior studies have largely emphasized financial and structural firm characteristics, relatively limited attention has been given to governance-related drivers of aggressive tax planning in emerging economies. This study examines the effect of selected corporate governance attributes industry type, board financial expertise, audit committee expertise, and ownership structure on aggressive tax planning of listed multinational firms in Nigeria. Using balanced panel data covering the period 2015–2024 and employing a dynamic System Generalized Method of Moments (System GMM) estimator, the study finds that industry type and ownership concentration significantly increase aggressive tax planning, whereas board financial expertise and audit committee expertise exert a significant constraining effect. The findings highlight the critical role of governance quality and sectoral characteristics in shaping corporate tax behavior and provide robust policy and regulatory implications for curbing profit shifting in Nigeria and similar emerging economies.