Corporate Governance Factors and Tax Avoidance of Listed Deposit Money Banks in Nigeria

  • AbdulRahman Bala Sani Usmanu Danfodiyo University, Sokoto
  • Salim Ibrahim Umar Usmanu Danfodiyo University, Sokoto
Keywords: Corporate Governance, Tax Avoidance, Deposit Money Bank, Profitability JEL Classification Codes: M40, H83, G21, H26


This research was conducted to determine the impact of corporate governance and tax evasion on Nigerian deposit money banks from 2015 to 2021. The Nigerian Deposit Insurance Corporation (NDIC) reports and annual reports of the banks served as the sources of data for the study. For the purpose of data analysis, the study made use of descriptive statistics, a correlation matrix, a cross-sectional dependency test, a panel unit root test, and a panel co-integration test. To test the hypotheses, the Panel Generalized Method of Moments (PGMM) was employed. According to the (PGMM), there is a weak and unimportant correlation between board size and tax evasion. Tax avoidance is positively and significantly impacted by board independence. The Nigerian deposit money banks' tax evasion is negatively yet significantly impacted by the control variables Firm size, Profitability (ROA), and financial leverage. The study's conclusions suggest that regulatory government agencies like the Security Exchange Commission (SEC), Nigerian Exchange Group (NGX), and Central Bank of Nigeria (CBN) should implement regulations that will strengthen the oversight and control of decisions made by Nigeria's deposit money banks. This would improve the banking industry in Nigeria's openness and accountability and aid in the eradication or restriction of tax evasion strategies.

Author Biographies

AbdulRahman Bala Sani, Usmanu Danfodiyo University, Sokoto

Department of Accounting,

Salim Ibrahim Umar, Usmanu Danfodiyo University, Sokoto

Department of Accounting,