TAX PLANNING AND THE TIMELINESS OF FINANCIAL REPORTING IN LISTED MANUFACTURING FIRMS IN NIGERIA
The timeliness of financial reports is a critical aspect of management and reporting, and its connection with tax planning in Nigeria's manufacturing sector seems complex and multifaceted. This study investigates the impact of tax avoidance and tax planning strategies on the timeliness of fina...
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| Format: | Article |
| Language: | English |
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Kwara State University, Malete Nigeria
2024-12-01
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| Series: | Malete Journal of Accounting and Finance |
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| Online Access: | https://majaf.com.ng/index.php/majaf/article/view/169 |
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| author | Ikponmwosa Michael Igbinovia Amaka Nkiru Unamma |
| author_facet | Ikponmwosa Michael Igbinovia Amaka Nkiru Unamma |
| author_sort | Ikponmwosa Michael Igbinovia |
| collection | DOAJ |
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The timeliness of financial reports is a critical aspect of management and reporting, and its connection with tax planning in Nigeria's manufacturing sector seems complex and multifaceted. This study investigates the impact of tax avoidance and tax planning strategies on the timeliness of financial reporting using a sample of 28 manufacturing firms in the Nigeria exchange group for the period 2015 to 2022. The result of the binary logistic (logit) regression analysis consisting of 224 firm-year observations revealed that at 5 % significance level, tax avoidance as measured by book tax difference and effective tax rate does not significantly influence the timeliness or otherwise of financial reporting in Nigeria manufacturing firms. Similarly, capital intensity, a measure of tax planning strategy exerts an insignificant negative effect on the timeliness or otherwise of financial reporting in Nigeria manufacturing firms. However, the study observed that leverage, a measure of tax planning strategy, is a significant determinant of the timeliness of financial reporting in Nigeria manufacturing firms. The study concludes that the delay on timely financial reporting orchestrated by tax planning is not significant enough to cause delays outside the statutory 90-day period. The study recommends that Managers take full advantage of tax avoidance and tax planning within the context of relevant tax laws, as they do not dampen firms’ ability to produce timely financial reports.
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| format | Article |
| id | doaj-art-86a2ed5431134f59af73af4da9b10194 |
| institution | Kabale University |
| issn | 2735-9603 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Kwara State University, Malete Nigeria |
| record_format | Article |
| series | Malete Journal of Accounting and Finance |
| spelling | doaj-art-86a2ed5431134f59af73af4da9b101942025-02-11T23:08:00ZengKwara State University, Malete NigeriaMalete Journal of Accounting and Finance2735-96032024-12-0151TAX PLANNING AND THE TIMELINESS OF FINANCIAL REPORTING IN LISTED MANUFACTURING FIRMS IN NIGERIAIkponmwosa Michael Igbinovia0Amaka Nkiru Unamma1Edo State University Uzairue, NigeriaFederal Polytechnic, Nekede-Owerri, Nigeria The timeliness of financial reports is a critical aspect of management and reporting, and its connection with tax planning in Nigeria's manufacturing sector seems complex and multifaceted. This study investigates the impact of tax avoidance and tax planning strategies on the timeliness of financial reporting using a sample of 28 manufacturing firms in the Nigeria exchange group for the period 2015 to 2022. The result of the binary logistic (logit) regression analysis consisting of 224 firm-year observations revealed that at 5 % significance level, tax avoidance as measured by book tax difference and effective tax rate does not significantly influence the timeliness or otherwise of financial reporting in Nigeria manufacturing firms. Similarly, capital intensity, a measure of tax planning strategy exerts an insignificant negative effect on the timeliness or otherwise of financial reporting in Nigeria manufacturing firms. However, the study observed that leverage, a measure of tax planning strategy, is a significant determinant of the timeliness of financial reporting in Nigeria manufacturing firms. The study concludes that the delay on timely financial reporting orchestrated by tax planning is not significant enough to cause delays outside the statutory 90-day period. The study recommends that Managers take full advantage of tax avoidance and tax planning within the context of relevant tax laws, as they do not dampen firms’ ability to produce timely financial reports. https://majaf.com.ng/index.php/majaf/article/view/169TimelinessTax PlanningFinancial ReportingBook tax differenceLeverage |
| spellingShingle | Ikponmwosa Michael Igbinovia Amaka Nkiru Unamma TAX PLANNING AND THE TIMELINESS OF FINANCIAL REPORTING IN LISTED MANUFACTURING FIRMS IN NIGERIA Malete Journal of Accounting and Finance Timeliness Tax Planning Financial Reporting Book tax difference Leverage |
| title | TAX PLANNING AND THE TIMELINESS OF FINANCIAL REPORTING IN LISTED MANUFACTURING FIRMS IN NIGERIA |
| title_full | TAX PLANNING AND THE TIMELINESS OF FINANCIAL REPORTING IN LISTED MANUFACTURING FIRMS IN NIGERIA |
| title_fullStr | TAX PLANNING AND THE TIMELINESS OF FINANCIAL REPORTING IN LISTED MANUFACTURING FIRMS IN NIGERIA |
| title_full_unstemmed | TAX PLANNING AND THE TIMELINESS OF FINANCIAL REPORTING IN LISTED MANUFACTURING FIRMS IN NIGERIA |
| title_short | TAX PLANNING AND THE TIMELINESS OF FINANCIAL REPORTING IN LISTED MANUFACTURING FIRMS IN NIGERIA |
| title_sort | tax planning and the timeliness of financial reporting in listed manufacturing firms in nigeria |
| topic | Timeliness Tax Planning Financial Reporting Book tax difference Leverage |
| url | https://majaf.com.ng/index.php/majaf/article/view/169 |
| work_keys_str_mv | AT ikponmwosamichaeligbinovia taxplanningandthetimelinessoffinancialreportinginlistedmanufacturingfirmsinnigeria AT amakankiruunamma taxplanningandthetimelinessoffinancialreportinginlistedmanufacturingfirmsinnigeria |