EFFECT OF CORPORATE TAX AVOIDANCE ON FINANCING CASHFLOW OF MANUFACTURING FIRMS IN NIGERIA

Abstract

The main objective of the study is to ascertain the effect of corporate tax avoidance on financing cash flow performance of quoted manufacturing firms in Nigerian. The research design adopted for the study was Ex-Post Facto research design. The study was limited to sixty-two (62) company’s selected using purposive sampling technique; the decision was premised on the classification of the firms as manufacturing (based on the nature and description of activities). The multiple regressions were used to validate the hypotheses. The analysis was done via E-Views statistical software. The study revealed that book tax difference and effective tax rate have a statistically significant effect on financing cash flows of quoted manufacturing firm. Based on the result, the study recommended among other things that Managers can strengthen the rating of a firm among her investors and attract further investors by utilising tax savings for financing policies, such as dividend payments.