PROPOSAL

OKOLIE FIDELIS OGUGUO

2020152020
 EFFECT OF CASH FLOW ON CORPORATE TAX
AGGRESSIVENESS OF QUOTED NON-FINANCIAL
FIRMS IN NIGERIA
 INTRODUCTION

• Cash Flow

• Corporate Tax Aggressiveness

 STATEMENT OF THE PROBLEM

• high-profile corporate accounting scandals in the 20th century

• Increases agency costs and reduces firm value.

• Negative reaction of stakeholders to corporate tax avoidance

behaviour.
 OBJECTIVES OF THE STUDY

Main objective - Specific objectives are to:

• Operating cash flow

• Financing cash flow Effective
• Investing cash flow Tax Rate

• Cash and cash equivalent

All of quoted non-financial firms.

 RESEARCH QUESTIONS & HYPOTHESES

Research questions and research hypotheses are in line with

the above stated specific objectives.
 SIGNIFICANCE OF THE STUDY

The study would be relevant to the following stakeholder

groups:
• Policy Makers
• Managers
• Shareholders
• Academia
 SCOPE OF THE STUDY

• Periodic scope
• Content scope
• Firm scope
• Geographical scope
 REVIEW OF RELATED LITERATURE
Dependent Variable CTA
Conceptual Framework

Independent Variable Cash Flow

Agency Theory (1986)

Theoretical Framework Tax Planning Theory (1961)

Empirical Review Local &

(47 Studies Reviewed ) International
 GAP IN LITERATURE

• Sector gap
• Variable gap
•

• Methodology gap
 METHODOLOGY
Research Design- The study intends to adopt the ex-post facto
research design.
Population of the Study- Will comprised all the 75 quoted non-
financial firms on the Nigerian Exchange Group (NGX) as at 31st
Dec. 2021.
Sample Size of the Study- The study shall employ a purposive
sampling technique to selects 21 firms with annual financial report
data from 2011 to 2021.
Sources of Data- The study shall rely on secondary data.
• Data will be source from published Statement of Financial Position
of firms under study.
Method of Data Analysis - Data collected will be analyzed using descriptive
statistics, correlation and regression analysis.
Model Specification- Model will be adapted from the work of Dang and Tran
(2021), Eze (2021) and Udeh and Eze (2021), Dang and Tran (2021) TA =
f(ZSore, SIZE, LEV, CINT, MKTBK, DITE); Eze (2021) FCFit = ETR, FSIZE,
FLEV, SGROW, ROA, FIRA) and Udeh and Eze (2021) OCF = f(ETR, SIZE,
FLEV, SGROW, ROA, FIRA) these model will be modified to suit the variables
under study.
ETR = f (OpCF, InvCF, FinCF, CCE, SIZE, LEV, SGR, AGE, BS)...... (1)
• This would be econometrically expressed as follows:

ETRit = β0 + β1OpCFit + β2InvCFit + β3FinCFit + β4CCEit + β5SIZE it + β6LEV it +

β7SGRit + β8AGE it + β9BSit+ ε t……………………….(2)
Decision Rule- Accept the alternate if p<.05; and reject the null or,
• Accept the null if p>.05; and reject the alternate.
THANKS