Corporate Governance Attributes and Tax Aggressiveness of Quoted Insurance Firms in Nigeria

The study was prompted by the need to investigate issues of tax compliance and corporate governance efficiency in the Nigerian insurance industry, as well as the lack of empirical studies on the connection between board characteristics and tax aggressiveness among quoted insurance companies. The study investigated the influence of corporate governance characteristics on tax aggressiveness of quoted insurance firms in Nigeria. The study was conducted using an ex-post facto research design, while the secondary data were collected from annual reports and financial statements of 21 quoted insurance companies in Nigeria from 2015 to 2024. Effective tax rate (ETR) was used to measure tax aggressiveness, while board size, board independence and board financial expertise were used as independent variables, and firm size, leverage and profitability were used as control variables. The collected data were analysed using descriptive and inferential statistics. The fixed effects model analysis result revealed that board size, board independence and board financial expertise had significant positive effects on ETR. The study concluds that board size, board independence and board financial expertise are critical governance tools in ensuring tax compliance and reducing tax aggression in publicly quoted insurance companies in Nigeria. The study therefore suggests, amongst others, that the regulators and insurance firms must see to it that independent directors are adequately represented on the board since an independent board will function objectively and thus not indulge in tax aggressiveness.