Abstract

This study examines the influence of firm characteristics on tax aggressiveness in listed manufacturing firms in Nigeria over the period 2014–2024. Using a random‑effects panel‑data model estimated on 558 firm‑year observations drawn from quoted manufacturing companies on the Nigerian Exchange Group, the research investigates how firm financial goals, global operations, tax professionals, firm complexity, industry norms, and firm competition shape the effective tax rate (ETR), the proxy for tax aggressiveness. The model explains approximately 61.78% of the variation in ETR (R² = 0.6178, adjusted R² = 0.5834), with a highly significant F‑statistic (F = 9.371, p < 0.01). The results show that firm financial goals (t = 0.790, p = 0.431), firm complexity (t = –0.368, p = 0.714), and tax professionals (t = 0.346, p = 0.730) are statistically insignificant, while industry norms are positively and significantly related to ETR (t = 2.419, p = 0.017), indicating that stronger sector‑level compliance norms are associated with lower tax aggressiveness. By contrast, firm competition exhibits a negative and highly significant coefficient (t = –4.265, p < 0.01), suggesting that more competitive environments are linked to higher tax aggressiveness. The findings refine existing literature by demonstrating that the relationship between firm characteristics and tax aggressiveness is context‑dependent and shaped by the interplay of agency‑cost incentives and institutional‑norms constraints. The study concludes with recommendations for corporate governance, tax‑disclosure practices, and public‑policy measures aimed at strengthening sector‑level compliance frameworks and enforcement capacity in Nigeria’s manufacturing sector.

Keywords

tax aggressiveness, firm characteristics, effective tax rate, panel data, Nigeria

File: 1778339586_Vol_10_2__006.pdf

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