CEO Attributes and Tax Avoidance: Evidence from Manufacturing Firms Listed on the Nigerian Exchange
This study examined how CEO attributes affect tax avoidance tendencies in Nigerian Stock Exchange-listed manufacturing firms. CEO attributes were proxied by tenure and ownership concentration, whereas Tax Avoidance (TA) was proxied by Effective Tax Rate (ETR). The study scope included all the 56 manufacturing firms listed on the Nigerian stock exchange as of August 31, 2021.Criteria such as availability of complete and wholistic records on CEOs and tax avoidance records were used to choose 27 firms. Secondary records from 2012-2021 culled from the audited financial statements was utilized. The System Generalized Moment Method of Regression Analysis was used to estimate the model. The outcome of the study revealed that the length of time a CEO has held their position has a negative and statistically significant effect on tax avoidance. This indicates that longer tenured CEOs possess the requisite learning curve that can reduce effective tax rates. In a similar vein, CEO ownership was found to have a positive and statistically significant effect on tax avoidance. The study’s finding has implication for both internal and external stakeholders, and recommends among others that firms should establishing robust corporate governance mechanisms, including independent and diligent boards of directors. Keywords: Tax Avoidance, CEO Tenure, CEO Ownership, Managerial Ownership