Moderating Role of Tax Aggressiveness on Board Attributes and Financial Performance of Listed Deposit Money Banks in Nigeria

Abstract

This study is to assess the moderating role of tax aggressiveness on the relationship between corporate governance and financial performance of Nigerian deposit money banks in Nigeria. Specifically, the study assesses the effect of board size, board independence and board gender diversity on the financial performance of Nigerian deposit money banks, with tax aggressive as the moderating variable. The study employs an ex-post facto research design using secondary data obtained from the annual reports and financial statements of 13 listed deposit money banks in Nigeria for the period 2014 to 2025. The Feasible Generalized Least Squares (FGLS) was used for the panel regression analysis. This is to correct for potential heteroskedasticity and autocorrelation in the data. Findings show that Board size, board gender diversity, and tax aggressiveness are found to significantly influence financial performance, while board independence does not affect financial performance. In general, the moderating role of tax aggressiveness show a positive association with the financial performance. This implies that banks with larger boards with board gender diversity can be involved in aggressive tax planning with positive effect on financial performance. it is recommended that regulators and policymakers should establish guidelines that support large board and gender diversity. Bank management should establish dedicated board committees to oversee tax-related matters, ensuring continuous review of tax strategies, compliance, and risk management practices.