Tax Planning and Firm Value of Oil and Gas Companies in Nigeria

Authors: Confidence Joel IHENYEN (PhD) , Moses Togo KOBON, & Atimi APIRIBO

Affiliation: Department of Accounting, Faculty of Management Sciences, Niger Delta University, Bayelsa State, Nigeria

Corresponding Author: [email protected]

December 1, 2025

SIAR-Global Journal of Social Sciences & Legal Review

DOI: 10.5281/zenodo.17779845

Tax Planning and Firm Value of Oil and Gas Companies in Nigeria

Research Article Social Sciences

Abstract

This study examined the effect of tax planning on the firm value of oil and gas companies listed in Nigeria between. Using an ex-post facto research design, data were collected from six companies selected based on availability (2019 to 2024), and both descriptive and inferential statistics were applied for analysis. The Lagrange Multiplier test was conducted to determine the appropriate panel regression model, which guided the testing of the hypotheses. The findings revealed that cash effective tax rate had a significant negative effect on firm value (with a coefficient of -0.125 and a p-value of 0.008), while book-tax difference exerted a significant positive influence (with a coefficient of 1.86 × 10^-9 and a p-value of 0.0097), indicating that strategic tax management played a crucial role in enhancing market valuation. The study concluded that effective tax planning is not only a fiscal management tool but also a strategic mechanism for improving firm performance and investor confidence. Based on these findings, the study recommended that companies should adopt efficient tax strategies, including optimizing cash tax payments and managing book-tax differences, to enhance firm value, and that policymakers and regulators should develop clear and supportive tax policies that encourage transparent and responsible tax planning

Keywords

Tax Planning, Cash Effective Tax Rate, Book-Tax Difference, Firm Value

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Confidence Joel IHENYEN (PhD) , Moses Togo KOBON, & Atimi APIRIBO (2025). Tax Planning and Firm Value of Oil and Gas Companies in Nigeria. SIAR-Global Journal of Social Sciences & Legal Review, Vol. 1, No. 1. DOI: 10.5281/zenodo.17779845

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Tax Planning and Firm Value of Oil and Gas Companies in Nigeria

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SIAR-Global Journal of Social Sciences & Legal Review