Effect of Corporate Tax Planning on Firm Value of Quoted Non-Financial Firms in Nigeria

This study examined the effect of corporate tax planning on the firm value of quoted non-financial firms in Nigeria. Specifically, the study investigated the impact of Effective Tax Rate (ETR), Deferred Tax Expense (DTE), and Tax Shelter Intensity (TSI) on firm value measured using Tobin’s Q. An ex-post facto research design was adopted, and secondary data were obtained from the published annual financial statements of selected quoted non-financial firms over the study period. The data were analyzed using descriptive statistics, correlation analysis, and Ordinary Least Squares (OLS) regression technique. The findings revealed that Effective Tax Rate has a positive and statistically significant effect on firm value, indicating that variations in tax burden significantly influence market valuation. Deferred Tax Expense was also found to have a positive and significant impact on firm value, suggesting that strategic management of temporary tax differences enhances shareholder value. Similarly, Tax Shelter Intensity exhibited a positive and statistically significant relationship with firm value, implying that structured tax planning activities improve after-tax cash flows and market performance. The overall regression model was statistically significant, with corporate tax planning variables collectively explaining a substantial proportion of variations in firm value. The study concludes that corporate tax planning, when properly structured and compliant with regulatory frameworks, enhances firm value among quoted non-financial firms in Nigeria. It recommends that firms adopt transparent and strategic tax planning policies aligned with long-term value creation objectives.