Tax Strategic Behaviour and Financial Performance of Quoted Agro-Allied Firms in Nigeria

Although there is a large literature on the relationship between tax strategic behavior and financial performance, there is no consensus about the nature of this relationship. The aim of this research is to analyse the relationship between tax strategic behavior and financial performance of listed agro-allied firms in Nigeria. secondary data on different types of tax strategic behavior and profit after tax from 2013-2023 were collected from central bank of Nigeria statistical bulletin, National Bureau of statistics and Federal Inland revenue Service. Descriptive statistics, ordinary least square regression analysis, augmented Dickey Fuller, Johansen Cointegration and error correction model were used in analyzing the data. The result indicate that tax strategic behaviour significantly relate to financial performance; explain about 82.4% of financial performance, research & development significantly relate to profit after tax. Thin capitalization and capital intensity were each found to not significantly relate to profit after tax. The study conclude that the exist a strong negative and significant relationship between tax strategic behavior and financial performance and recommends that amongst others that companies should put in place appropriate tax strategic behavior that will decrease their tax liabilities and therefore improve their overall corporate financial performance.