Gender Diversity in Audit Committee and Tax Aggressiveness of Listed Manufacturing Firms in Nigeria

Abstract

This study investigated the effect of gender diversity in audit committees on tax aggressiveness among listed manufacturing firms in Nigeria. Specifically, it evaluates how the proportion of female members (PFM) and the presence of a female chairperson in the audit committee (FCPAC) influence corporate tax behavior, measured by the Cash Effective Tax Rate (CETR). Adopting a correlational research design, the study population comprises all fifteen (15) food manufacturing firms listed on the Nigerian Exchange Group as at 31st December 2024. Using a census sampling technique, seven (7) firms were selected, including Guinness Nigeria Plc, Nestle Nigeria Plc, Dangote Sugar Refinery, Honeywell Flour Mill Plc, Cussons Nigeria Plc, Unilever Nigeria Plc, and Vita Foam Plc. The study utilizes secondary data obtained from audited annual reports of the selected firms over a ten-year period (2015–2024). Panel least squares regression analysis with fixed effects was employed to analyze the data. Findings reveal that while the overall model is statistically significant, neither the proportion of female audit committee members nor the presence of a female audit committee chair significantly affects tax aggressiveness. The study concludes that gender diversity in audit committees alone does not significantly curb aggressive tax strategies among Nigerian manufacturing firms and recommends a holistic approach to audit committee composition and governance reforms to strengthen tax compliance.

Keywords

• Gender Diversity
• Audit Committees
• Tax Aggressiveness

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