TAX PLANNING AND FIRM VALUE OF QUOTED FOOD AND BEVERAGES FIRM IN NIGERIA

Abstract

The study examined tax planning on firm value of quoted food and beverages firm in Nigeria. The study employed descriptive ex-post facto. The study uses secondary data, collected from annual financial reports and account of 11 selected firms out of 14 listed beverages sectors from period of 2011 to 2020. Regression analysis was used in testing the formulated hypothesis using E-View 9 statistical software. The regression results show that there is no significant effect of Effective tax rate on Tobin's Q of quoted food and beverages firms in Nigeria at 5% level of significance (t-statistic = 0.603, p-value > 0.05). Therefore, firms that plan to reduce their tax liabilities often optimize their leverage levels. Food and beverages firms should consider the possible penalties imposed by tax authorities, and reputational risks that may result from engaging in aggressive tax planning behaviours.