Title: EVALUATION OF CORPORATE GOVERNANCE AND TAX COMPLIANCE OF LISTED FINANCIAL INSTITUTIONS IN NIGERIA

Authors: Godwin Emmanuel Oyedokun, Akinjide Oladeji Oyekunle And Eso Ayoola Abimbola

Abstract: This study examines the impact of corporate governance mechanisms on tax compliance among listed financial institutions in Nigeria, drawing on Institutional Theory and the Theory of Planned Behavior to explain managerial and organizational behavior. A qualitative research approach was adopted, with data collected through semi-structured interviews with board members, audit committee representatives, and tax managers of selected institutions from 2014 to 2024. Findings reveal that strong corporate governance practices significantly improve tax compliance levels. Specifically, institutions with independent boards, active audit committees, and higher levels of managerial transparency demonstrate greater adherence to tax regulations. Conversely, weak governance structures and concentrated ownership were associated with aggressive tax avoidance and non-compliance tendencies. The study further discovered that regulatory oversight, ethical leadership, and effective internal control systems play pivotal roles in curbing non-compliant practices and promoting fiscal discipline within the financial sector. Challenges hindering compliance included complex tax laws, frequent policy changes, limited staff knowledge, and inadequate enforcement. The study concludes that corporate governance mechanisms significantly influence tax compliance among listed financial institutions in Nigeria. Based on the findings, the study recommends strengthening board independence, improving audit committee oversight, enhancing staff training, upgrading digital tax reporting systems, and simplifying tax policies to promote compliance. The study contributes to the understanding of governance-tax compliance dynamics in the Nigerian financial sector and provides actionable insights for policymakers, corporate managers, and regulatory authorities.

Keywords: Audit committees, Board characteristics, financial institutions, Ownership structure, Tax compliance.

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