Open Access

A Multivariate Analytical Model of Firm-Specific Determinants Influencing Aggressive Tax Avoidance Behaviour among Listed Commercial Banks in Nigeria

https://doi.org/10.55640/ijmbd-v03i08-02

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Haruto Sato ¹ , Yui Nakamura ¹ ,

⁴ Corporate Governance & Financial Management, Graduate School of Business, Tokyo Metropolitan University, Tokyo, Japan

⁴ Human Resource Management & Innovation Systems, School of Management Sciences, Kyoto Institute of Technology, Kyoto, Japan

Abstract

This study develops a multivariate analytical framework to examine firm-specific determinants influencing aggressive tax avoidance behaviour among listed commercial banks in Nigeria. Drawing on stakeholder theory, legitimacy theory, and classical tax compliance models, the paper synthesizes empirical and theoretical insights to explain how internal firm characteristics such as profitability, leverage, firm size, corporate governance, and ownership structure shape tax planning aggressiveness. The study adopts a conceptual econometric modeling approach grounded in prior literature on tax avoidance and corporate financial behavior.

Findings from the synthesized literature indicate that firm size, leverage intensity, board structure, and executive incentives significantly influence tax avoidance behaviour, while regulatory scrutiny and corporate social responsibility disclosures moderate aggressive tax practices. The study further reveals that Nigerian commercial banks operate within a complex institutional environment where profitability maximization and regulatory compliance often conflict, leading to strategic tax planning decisions. The proposed multivariate model contributes to existing literature by integrating financial, governance, and behavioral determinants into a unified analytical framework.

The study concludes that aggressive tax avoidance in Nigerian banks is not random but systematically driven by identifiable firm-level characteristics and governance mechanisms. Policy implications suggest strengthening transparency regulations, improving board independence, and enhancing tax authority monitoring systems.

Keywords

Tax avoidance, firm characteristics, commercial banks, Nigeria

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