Board Characteristics and Tax Avoidance in Listed Industrial Goods Companies in Nigeria

This study investigates the relationship between board characteristics and tax avoidance in listed industrial goods companies in Nigeria over the period 2009 to 2023. The study specifically examines whether board size, board independence, and CEO duality significantly influence firms' tax avoidance practices, with tax avoidance measured using the effective tax rate (ETR). Using secondary data from annual reports of ten purposively selected firms, the analysis employs descriptive statistics, correlation analysis, and fixed effects regression to examine the hypothesized relationships. The findings reveal that tax avoidance among the sampled companies is relatively low and consistent, with limited variation across firms. Descriptive statistics show that board size averages around ten members, board independence is generally low, and CEO duality is largely absent. Correlation results indicate weak or no significant relationships between tax avoidance and the selected board characteristics. Further, the fixed effects regression model confirms that board size, board independence, and CEO duality do not have statistically significant effects on tax avoidance. However, the model’s overall significance, as indicated by an F-statistic of 4.078 and a p-value of 0.000053, suggests that other unobserved firm-specific factors may influence tax behavior. The study concludes that traditional board attributes may not play a critical role in shaping tax avoidance practices in Nigeria’s industrial goods sector. It recommends that future research explore broader governance variables and firm-specific characteristics, while policymakers and regulators should focus on institutional reforms that promote transparency, enforcement, and ethical corporate behavior.