Martins Mustapha Abu

The study investigates the interactive impact of tax planning and CG on firm value of the listed Nigerian consumer goods firms by examining whether this relationship is further strengthened or weakened in the presence of strong corporate governance. From the population of the entire 21 consumer goods firms of the Nigerian Exchange (NGX), 19 firms with complete data were selected as a sample. Data were collected from the annual reports of these firms and both descriptive and inferential analyses were employed to estimate the relationship between the variables. Tax planning was measured using the effective tax rate and book-tax difference, firm value using Tobin’s q, while corporate governance was measured using board independence. The fixed effect panel regression was used to estimate the relationship. The study revealed a positive relationship between tax planning (for both proxies) and firm value although the relationship is statistically insignificant (p = 0.0981 and 0.387). Also, there is limited evidence to support the assertion that the interactive effect of tax planning and firm value is significantly moderated by corporate governance (p = 0.818). The combined implication is that evidence on the moderating effect of corporate governance on tax planning and firm value is limited and should be interpreted with caution suggesting that more empirical research should be carried out in this area. In addition, shareholders should demand more disclosure of tax-related matters as this will help prevent information asymmetry, improve monitoring, and increase the value effectiveness of tax planning.

Faulty board configurations associated with risk management practices are alleged to be the primary sources of most corporate failures. Therefore, experts have suggested that firms should adopt holistic risk management practices. This study investigates the interactive effect of board characteristics with risk management activities on the performance of listed Nigerian non-financial firms. The study is anchored on the agency theory perspective. It is designed as ex post facto inquiry with a population of 113 companies, from which a sample of 96 firms was drawn from firms with a complete set of data. Secondary data were extracted from the NSE Factbook and Thomson Reuter’s DataStream for 2010–2019. The static panel regression technique was utilized to analyze and estimate the interaction between the variables. The findings show that all the independent variables positively impacted ROA of the listed firms. Nevertheless, concerning market evaluation (Tobin-Q), except for board financial experts and audit committee meetings, risk management committee meetings and the presence of chief risk officer showed an insignificant impact. The combined implication is that although firms have complied with the provision of the CG codes on risk governance structure, the improvements associated with risk management aimed at enhancing market evaluation are nonetheless not deeply embedded in these firms. Firms are suggested to implement effective risk management practices to achieve competitive advantages and substantiality. More studies are advocated to extend the literature by expanding the scope.