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ISSN: 2344 - 102X
ISSN-L: 2344 - 102X
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Article from Volume 6, Number 3, Year 2018| INFLUENCE OF CORPORATE TAX PLANNING ON INVESTORS' CONFIDENCE AS A DETERMINANT OF SHARE PRICE (A CASE OF SELECTED DEPOSIT MONEY BANKS IN NIGERIA) | 
Download | | Author(s): Yusuf Babatunde Rahman, Abata Mathhew Adeolu, Sodiq Ogundeko | | DOI: 10.4316/EJAFB.2018.637 | | Abstract: Corporate Tax planning practices are gaining ground among firms as an avenue to reduce the tax exposure of such firm. The impact of such practices on the overall Corporate Objectives of maximising the shareholders wealth through increase in share price has been a subject of controversies. The paper examine the Corporate Tax Planning scheme influence on Investors' Confidence as it helps to determine the share price of listed banks in Nigeria. Ten out of the listed fifteen Deposit Money Banks were selected using Purposive Sampling Technique. Three hypotheses were formulated and tested using Panel Least Square Method and Correlation Analysis. The Correlation Coefficient (0.2034) in hypothesis one established a positive relationship between ETR and Share Price of listed banks in Nigeria. The result from Hypothesis two (-0.1606) indicate a negative insignificant influence of Tax Planning on the Investors' Confidence. It was recommended that the management should exercise caution in implementing an Aggressive Tax Scheme as some has more damaging effects on the firm through Reputational costs than associated benefits. Government should sensitize the public about the danger of aggressive tax planning so as to boost its tax revenue. | | Keywords: Corporate Tax Planning, Investors Confidence, Share Price, Tax Evasion, Tax Avoidance | References:
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