BOARD FEATURES AND EFFECTIVE TAX RATE OF LISTED MANUFACTURING COMPANIES IN NIGERIA

Abstract

This study investigates the effect of selected board features (board size, board independence, board gender diversity, managerial ownership, and board expertise) on effective corporate tax rate of listed manufacturing companies in the Nigerian stock exchange for the period 2011 to 2020. This study employs descriptive statistics, correlation matrix and panel regression technique as tools of analysis within the framework of the Agency theory as well as other theories such as the Political cost theory and theory of Optimal taxation. Results revealed that board size and board gender diversity were positively and insignificantly related to effective tax rate while board independence, managerial ownership, and board expertise were positively and significantly related to effective tax rate. This study therefore recommends that firms in Nigeria should improve the board of directors’ financial expertise as this will influence effective strategies for reducing tax liabilities and invariably result in the best tax management practices. Also, clarifying the duties of directors in the use of appropriate tax