TAX SHIELD ON EFFECTIVE TAX RATE AND EARNINGS MANAGEMENT OF NIGERIAN DEPOSIT MONEY BANKS

This study examined corporate tax shield and earnings management of Nigerian deposit money banks, using effective tax rate as the independent variable and TACC for dependent variable. Ex post facto research design was employed for the study. A sample of thirteen (13) banks was used for the study. Data were extracted from annual reports and accounts of the sampled banks. Regression analysis, the study revealed that effective tax rate has negative and insignificant effect on earnings management of deposit money banks in Nigeria at 5% level of significance. However, the study conclude that tax shield of effective tax rate has no significant effect on earning management in Nigerian banks. Based on the findings, the study recommended that the use of effective tax rate by management to generate growth should be discouraged