CORPORATE SOCIAL RESPONSIBILITY AND TAX AGGRESSIVENESS IN NIGERIA QUOTED COMPANIES

Abstract

The study examined the effect of corporate social responsibility on tax aggressiveness in Nigeria quoted companies. The study adopted Ex-Post-facto method with extensive reliance on secondary data sourced from the annual reports of thirty-five (35) manufacturing firms quoted on the floor of Nigerian Stock Exchange for the period of 2011-2019. Both statistical and econometric tools were employed in the analysis. The study showed that corporate social responsibility has a positive and significant relationship with tax aggressiveness proxied by effective tax rate in Nigerian manufacturing firms. It was also discovered that community development has a negative effect on tax aggressiveness proxied by effective tax rate in Nigeria manufacturing firms. Also, Social and political engagement has negative effect on effective tax rate in Nigerian sampled manufacturing firms. Hence, the study recommends that manufacturing companies in Nigeria should engage more in corporate social responsibility by giving more to their community where the firm domicile and their country at large. As firms with these characteristics have strong relationship with effective tax rate, which will in turn enhance and improve the confidence of their investors.