{"id":3894,"date":"2026-06-25T19:26:39","date_gmt":"2026-06-25T19:26:39","guid":{"rendered":"https:\/\/birpub.org\/ijarfi\/?post_type=journal_article&#038;p=3894"},"modified":"2026-06-25T20:02:27","modified_gmt":"2026-06-25T20:02:27","slug":"effect-of-tax-planning-strategy-on-financial-performance-of-listed-deposit-money-banks-in-nigeria","status":"publish","type":"journal_article","link":"https:\/\/birpub.org\/ijarfi\/journal_article\/effect-of-tax-planning-strategy-on-financial-performance-of-listed-deposit-money-banks-in-nigeria\/","title":{"rendered":"Effect of Tax Planning Strategy on Financial Performance of Listed Deposit Money Banks in Nigeria"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Omulu, Nneka Eunice<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Abstract<\/strong>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><em>Background: Tax planning strategy constitutes a critical corporate financial management tool through which firms legally minimize tax liabilities to enhance profitability and shareholder value. In the Nigerian banking sector, where corporate income tax rates impose substantial fiscal burdens, deposit money banks deploy various tax planning mechanisms, including effective tax rate optimization, debt tax shields, thin capitalization strategies, and capital intensity management, to improve financial performance. Despite growing scholarly interest in corporate tax planning in Nigeria, the empirical literature on the specific effects of these strategies on the return on assets (ROA) of listed deposit money banks remains fragmented and methodologically inconsistent. Objectives: This study examined the effect of tax planning strategy on the financial performance of listed deposit money banks in Nigeria, specifically investigating the effects of effective tax rate, debt tax shield, thin capitalization, and capital intensity on return on assets. Method: An ex-post facto longitudinal panel data design was adopted. Secondary data were extracted from the audited annual reports and financial statements of 22 listed deposit money banks on the Nigerian Exchange Group (NGX) from 2013 to 2023, yielding 220 bank-year observations. Data were analyzed using panel generalized least squares (GLS) with cross-sectional SUR correction following confirmation of heteroskedasticity and autocorrelation. Pre-estimation tests including unit root (LLC and ADF Fisher), Hausman specification test, Pearson correlation, and VIF analysis were conducted. Results: Effective tax rate had a significant negative effect on ROA (\u03b2 = \u22120.312, p &lt; 0.05); debt tax shield had a significant positive effect on ROA (\u03b2 = 0.287, p &lt; 0.05); thin capitalization had a significant negative effect on ROA (\u03b2 = \u22120.198, p &lt; 0.05); and capital intensity had a significant negative effect on ROA (\u03b2 = \u22120.174, p &lt; 0.05). Conclusion: Tax planning strategies significantly determine the financial performance of Nigerian listed deposit money banks.<\/em><em><\/em><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>Keywords: <\/em><\/strong><em>Tax planning, effective tax rate, debt tax shield, thin capitalization, capital intensity, return on assets, deposit money banks<\/em><em><\/em><strong><em>Cite<\/em><\/strong><em>: <\/em>Omulu, N. E.(2026). Effect of Tax Planning Strategy on Financial Performance of Listed Deposit Money Banks in Nigeria. <em>International Journal of Accounting Research and Financial Insights,<\/em><em>4<\/em>(4), 326-339.<a href=\"https:\/\/doi.org\/10.5281\/zenodo.20817551\">https:\/\/doi.org\/10.5281\/zenodo.20817551<\/a><\/p>\n\n\n\n<div data-wp-interactive=\"core\/file\" class=\"wp-block-file\"><object data-wp-bind--hidden=\"!state.hasPdfPreview\" hidden class=\"wp-block-file__embed\" data=\"https:\/\/birpub.org\/ijarfi\/wp-content\/uploads\/sites\/3\/2026\/06\/IJARFI_44-326-339-1.pdf\" type=\"application\/pdf\" style=\"width:100%;height:600px\" aria-label=\"Embed of IJARFI_44, 326-339.\"><\/object><a id=\"wp-block-file--media-5fe97058-95c0-4afa-bbb5-670baaa97fda\" href=\"https:\/\/birpub.org\/ijarfi\/wp-content\/uploads\/sites\/3\/2026\/06\/IJARFI_44-326-339-1.pdf\">IJARFI_44, 326-339<\/a><a href=\"https:\/\/birpub.org\/ijarfi\/wp-content\/uploads\/sites\/3\/2026\/06\/IJARFI_44-326-339-1.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-5fe97058-95c0-4afa-bbb5-670baaa97fda\">Download<\/a><\/div>\n","protected":false},"author":1,"template":"","journal_article_cats":[237],"class_list":["post-3894","journal_article","type-journal_article","status-publish","hentry","journal_article_cat-vol-4-no-4"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.1 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Effect of Tax Planning Strategy on Financial Performance of Listed Deposit Money Banks in Nigeria - International Journal of Accounting Research and Financial Insights (IJARFI)<\/title>\n<meta name=\"description\" content=\"Background: Tax planning strategy constitutes a critical corporate financial management tool through which firms legally minimize tax liabilities to enhance profitability and shareholder value. In the Nigerian banking sector, where corporate income tax rates impose substantial fiscal burdens, deposit money banks deploy various tax planning mechanisms, including effective tax rate optimization, debt tax shields, thin capitalization strategies, and capital intensity management, to improve financial performance. Despite growing scholarly interest in corporate tax planning in Nigeria, the empirical literature on the specific effects of these strategies on the return on assets (ROA) of listed deposit money banks remains fragmented and methodologically inconsistent. Objectives: This study examined the effect of tax planning strategy on the financial performance of listed deposit money banks in Nigeria, specifically investigating the effects of effective tax rate, debt tax shield, thin capitalization, and capital intensity on return on assets. Method: An ex-post facto longitudinal panel data design was adopted. Secondary data were extracted from the audited annual reports and financial statements of 22 listed deposit money banks on the Nigerian Exchange Group (NGX) from 2013 to 2023, yielding 220 bank-year observations. Data were analyzed using panel generalized least squares (GLS) with cross-sectional SUR correction following confirmation of heteroskedasticity and autocorrelation. Pre-estimation tests including unit root (LLC and ADF Fisher), Hausman specification test, Pearson correlation, and VIF analysis were conducted. Results: Effective tax rate had a significant negative effect on ROA (\u03b2 = \u22120.312, p &lt; 0.05); debt tax shield had a significant positive effect on ROA (\u03b2 = 0.287, p &lt; 0.05); thin capitalization had a significant negative effect on ROA (\u03b2 = \u22120.198, p &lt; 0.05); and capital intensity had a significant negative effect on ROA (\u03b2 = \u22120.174, p &lt; 0.05). Conclusion: Tax planning strategies significantly determine the financial performance of Nigerian listed deposit money banks.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/birpub.org\/ijarfi\/journal_article\/effect-of-tax-planning-strategy-on-financial-performance-of-listed-deposit-money-banks-in-nigeria\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Effect of Tax Planning Strategy on Financial Performance of Listed Deposit Money Banks in Nigeria\" \/>\n<meta property=\"og:description\" content=\"Background: Tax planning strategy constitutes a critical corporate financial management tool through which firms legally minimize tax liabilities to enhance profitability and shareholder value. In the Nigerian banking sector, where corporate income tax rates impose substantial fiscal burdens, deposit money banks deploy various tax planning mechanisms, including effective tax rate optimization, debt tax shields, thin capitalization strategies, and capital intensity management, to improve financial performance. Despite growing scholarly interest in corporate tax planning in Nigeria, the empirical literature on the specific effects of these strategies on the return on assets (ROA) of listed deposit money banks remains fragmented and methodologically inconsistent. Objectives: This study examined the effect of tax planning strategy on the financial performance of listed deposit money banks in Nigeria, specifically investigating the effects of effective tax rate, debt tax shield, thin capitalization, and capital intensity on return on assets. Method: An ex-post facto longitudinal panel data design was adopted. Secondary data were extracted from the audited annual reports and financial statements of 22 listed deposit money banks on the Nigerian Exchange Group (NGX) from 2013 to 2023, yielding 220 bank-year observations. Data were analyzed using panel generalized least squares (GLS) with cross-sectional SUR correction following confirmation of heteroskedasticity and autocorrelation. Pre-estimation tests including unit root (LLC and ADF Fisher), Hausman specification test, Pearson correlation, and VIF analysis were conducted. Results: Effective tax rate had a significant negative effect on ROA (\u03b2 = \u22120.312, p &lt; 0.05); debt tax shield had a significant positive effect on ROA (\u03b2 = 0.287, p &lt; 0.05); thin capitalization had a significant negative effect on ROA (\u03b2 = \u22120.198, p &lt; 0.05); and capital intensity had a significant negative effect on ROA (\u03b2 = \u22120.174, p &lt; 0.05). Conclusion: Tax planning strategies significantly determine the financial performance of Nigerian listed deposit money banks.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/birpub.org\/ijarfi\/journal_article\/effect-of-tax-planning-strategy-on-financial-performance-of-listed-deposit-money-banks-in-nigeria\/\" \/>\n<meta property=\"og:site_name\" content=\"International Journal of Accounting Research and Financial Insights (IJARFI)\" \/>\n<meta property=\"article:modified_time\" content=\"2026-06-25T20:02:27+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"ScholarlyArticle\",\"@id\":\"https:\\\/\\\/birpub.org\\\/ijarfi\\\/journal_article\\\/effect-of-tax-planning-strategy-on-financial-performance-of-listed-deposit-money-banks-in-nigeria\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/birpub.org\\\/ijarfi\\\/journal_article\\\/effect-of-tax-planning-strategy-on-financial-performance-of-listed-deposit-money-banks-in-nigeria\\\/\"},\"author\":{\"name\":\"birpo\",\"@id\":\"https:\\\/\\\/birpub.org\\\/ijarfi\\\/#\\\/schema\\\/person\\\/a01bf0d010e3d6c4df289f481abdb958\"},\"headline\":\"Effect of Tax Planning Strategy on Financial Performance of Listed Deposit Money Banks in Nigeria\",\"datePublished\":\"2026-06-25T19:26:39+00:00\",\"dateModified\":\"2026-06-25T20:02:27+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/birpub.org\\\/ijarfi\\\/journal_article\\\/effect-of-tax-planning-strategy-on-financial-performance-of-listed-deposit-money-banks-in-nigeria\\\/\"},\"wordCount\":363,\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/birpub.org\\\/ijarfi\\\/journal_article\\\/effect-of-tax-planning-strategy-on-financial-performance-of-listed-deposit-money-banks-in-nigeria\\\/\",\"url\":\"https:\\\/\\\/birpub.org\\\/ijarfi\\\/journal_article\\\/effect-of-tax-planning-strategy-on-financial-performance-of-listed-deposit-money-banks-in-nigeria\\\/\",\"name\":\"Effect of Tax Planning Strategy on Financial Performance of Listed Deposit Money Banks in Nigeria - International Journal of Accounting Research and Financial Insights (IJARFI)\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/birpub.org\\\/ijarfi\\\/#website\"},\"datePublished\":\"2026-06-25T19:26:39+00:00\",\"dateModified\":\"2026-06-25T20:02:27+00:00\",\"description\":\"Background: Tax planning strategy constitutes a critical corporate financial management tool through which firms legally minimize tax liabilities to enhance profitability and shareholder value. In the Nigerian banking sector, where corporate income tax rates impose substantial fiscal burdens, deposit money banks deploy various tax planning mechanisms, including effective tax rate optimization, debt tax shields, thin capitalization strategies, and capital intensity management, to improve financial performance. Despite growing scholarly interest in corporate tax planning in Nigeria, the empirical literature on the specific effects of these strategies on the return on assets (ROA) of listed deposit money banks remains fragmented and methodologically inconsistent. Objectives: This study examined the effect of tax planning strategy on the financial performance of listed deposit money banks in Nigeria, specifically investigating the effects of effective tax rate, debt tax shield, thin capitalization, and capital intensity on return on assets. Method: An ex-post facto longitudinal panel data design was adopted. Secondary data were extracted from the audited annual reports and financial statements of 22 listed deposit money banks on the Nigerian Exchange Group (NGX) from 2013 to 2023, yielding 220 bank-year observations. Data were analyzed using panel generalized least squares (GLS) with cross-sectional SUR correction following confirmation of heteroskedasticity and autocorrelation. Pre-estimation tests including unit root (LLC and ADF Fisher), Hausman specification test, Pearson correlation, and VIF analysis were conducted. Results: Effective tax rate had a significant negative effect on ROA (\u03b2 = \u22120.312, p &lt; 0.05); debt tax shield had a significant positive effect on ROA (\u03b2 = 0.287, p &lt; 0.05); thin capitalization had a significant negative effect on ROA (\u03b2 = \u22120.198, p &lt; 0.05); and capital intensity had a significant negative effect on ROA (\u03b2 = \u22120.174, p &lt; 0.05). Conclusion: Tax planning strategies significantly determine the financial performance of Nigerian listed deposit money banks.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/birpub.org\\\/ijarfi\\\/journal_article\\\/effect-of-tax-planning-strategy-on-financial-performance-of-listed-deposit-money-banks-in-nigeria\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/birpub.org\\\/ijarfi\\\/journal_article\\\/effect-of-tax-planning-strategy-on-financial-performance-of-listed-deposit-money-banks-in-nigeria\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/birpub.org\\\/ijarfi\\\/journal_article\\\/effect-of-tax-planning-strategy-on-financial-performance-of-listed-deposit-money-banks-in-nigeria\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/birpub.org\\\/ijarfi\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Effect of Tax Planning Strategy on Financial Performance of Listed Deposit Money Banks in Nigeria\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/birpub.org\\\/ijarfi\\\/#website\",\"url\":\"https:\\\/\\\/birpub.org\\\/ijarfi\\\/\",\"name\":\"International Journal of Accounting Research and Financial Insights (IJARFI)\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/birpub.org\\\/ijarfi\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/birpub.org\\\/ijarfi\\\/#\\\/schema\\\/person\\\/a01bf0d010e3d6c4df289f481abdb958\",\"name\":\"birpo\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/456e5b4da19eedccc615c6da405c2fdd61087a592d2d3e354c20fdab032f97b2?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/456e5b4da19eedccc615c6da405c2fdd61087a592d2d3e354c20fdab032f97b2?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/456e5b4da19eedccc615c6da405c2fdd61087a592d2d3e354c20fdab032f97b2?s=96&d=mm&r=g\",\"caption\":\"birpo\"},\"sameAs\":[\"http:\\\/\\\/birpub.org\"],\"url\":\"https:\\\/\\\/birpub.org\\\/ijarfi\\\/author\\\/birpo\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Effect of Tax Planning Strategy on Financial Performance of Listed Deposit Money Banks in Nigeria - International Journal of Accounting Research and Financial Insights (IJARFI)","description":"Background: Tax planning strategy constitutes a critical corporate financial management tool through which firms legally minimize tax liabilities to enhance profitability and shareholder value. In the Nigerian banking sector, where corporate income tax rates impose substantial fiscal burdens, deposit money banks deploy various tax planning mechanisms, including effective tax rate optimization, debt tax shields, thin capitalization strategies, and capital intensity management, to improve financial performance. Despite growing scholarly interest in corporate tax planning in Nigeria, the empirical literature on the specific effects of these strategies on the return on assets (ROA) of listed deposit money banks remains fragmented and methodologically inconsistent. Objectives: This study examined the effect of tax planning strategy on the financial performance of listed deposit money banks in Nigeria, specifically investigating the effects of effective tax rate, debt tax shield, thin capitalization, and capital intensity on return on assets. Method: An ex-post facto longitudinal panel data design was adopted. Secondary data were extracted from the audited annual reports and financial statements of 22 listed deposit money banks on the Nigerian Exchange Group (NGX) from 2013 to 2023, yielding 220 bank-year observations. Data were analyzed using panel generalized least squares (GLS) with cross-sectional SUR correction following confirmation of heteroskedasticity and autocorrelation. Pre-estimation tests including unit root (LLC and ADF Fisher), Hausman specification test, Pearson correlation, and VIF analysis were conducted. Results: Effective tax rate had a significant negative effect on ROA (\u03b2 = \u22120.312, p &lt; 0.05); debt tax shield had a significant positive effect on ROA (\u03b2 = 0.287, p &lt; 0.05); thin capitalization had a significant negative effect on ROA (\u03b2 = \u22120.198, p &lt; 0.05); and capital intensity had a significant negative effect on ROA (\u03b2 = \u22120.174, p &lt; 0.05). Conclusion: Tax planning strategies significantly determine the financial performance of Nigerian listed deposit money banks.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/birpub.org\/ijarfi\/journal_article\/effect-of-tax-planning-strategy-on-financial-performance-of-listed-deposit-money-banks-in-nigeria\/","og_locale":"en_US","og_type":"article","og_title":"Effect of Tax Planning Strategy on Financial Performance of Listed Deposit Money Banks in Nigeria","og_description":"Background: Tax planning strategy constitutes a critical corporate financial management tool through which firms legally minimize tax liabilities to enhance profitability and shareholder value. In the Nigerian banking sector, where corporate income tax rates impose substantial fiscal burdens, deposit money banks deploy various tax planning mechanisms, including effective tax rate optimization, debt tax shields, thin capitalization strategies, and capital intensity management, to improve financial performance. Despite growing scholarly interest in corporate tax planning in Nigeria, the empirical literature on the specific effects of these strategies on the return on assets (ROA) of listed deposit money banks remains fragmented and methodologically inconsistent. Objectives: This study examined the effect of tax planning strategy on the financial performance of listed deposit money banks in Nigeria, specifically investigating the effects of effective tax rate, debt tax shield, thin capitalization, and capital intensity on return on assets. Method: An ex-post facto longitudinal panel data design was adopted. Secondary data were extracted from the audited annual reports and financial statements of 22 listed deposit money banks on the Nigerian Exchange Group (NGX) from 2013 to 2023, yielding 220 bank-year observations. Data were analyzed using panel generalized least squares (GLS) with cross-sectional SUR correction following confirmation of heteroskedasticity and autocorrelation. Pre-estimation tests including unit root (LLC and ADF Fisher), Hausman specification test, Pearson correlation, and VIF analysis were conducted. Results: Effective tax rate had a significant negative effect on ROA (\u03b2 = \u22120.312, p &lt; 0.05); debt tax shield had a significant positive effect on ROA (\u03b2 = 0.287, p &lt; 0.05); thin capitalization had a significant negative effect on ROA (\u03b2 = \u22120.198, p &lt; 0.05); and capital intensity had a significant negative effect on ROA (\u03b2 = \u22120.174, p &lt; 0.05). Conclusion: Tax planning strategies significantly determine the financial performance of Nigerian listed deposit money banks.","og_url":"https:\/\/birpub.org\/ijarfi\/journal_article\/effect-of-tax-planning-strategy-on-financial-performance-of-listed-deposit-money-banks-in-nigeria\/","og_site_name":"International Journal of Accounting Research and Financial Insights (IJARFI)","article_modified_time":"2026-06-25T20:02:27+00:00","twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"ScholarlyArticle","@id":"https:\/\/birpub.org\/ijarfi\/journal_article\/effect-of-tax-planning-strategy-on-financial-performance-of-listed-deposit-money-banks-in-nigeria\/#article","isPartOf":{"@id":"https:\/\/birpub.org\/ijarfi\/journal_article\/effect-of-tax-planning-strategy-on-financial-performance-of-listed-deposit-money-banks-in-nigeria\/"},"author":{"name":"birpo","@id":"https:\/\/birpub.org\/ijarfi\/#\/schema\/person\/a01bf0d010e3d6c4df289f481abdb958"},"headline":"Effect of Tax Planning Strategy on Financial Performance of Listed Deposit Money Banks in Nigeria","datePublished":"2026-06-25T19:26:39+00:00","dateModified":"2026-06-25T20:02:27+00:00","mainEntityOfPage":{"@id":"https:\/\/birpub.org\/ijarfi\/journal_article\/effect-of-tax-planning-strategy-on-financial-performance-of-listed-deposit-money-banks-in-nigeria\/"},"wordCount":363,"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/birpub.org\/ijarfi\/journal_article\/effect-of-tax-planning-strategy-on-financial-performance-of-listed-deposit-money-banks-in-nigeria\/","url":"https:\/\/birpub.org\/ijarfi\/journal_article\/effect-of-tax-planning-strategy-on-financial-performance-of-listed-deposit-money-banks-in-nigeria\/","name":"Effect of Tax Planning Strategy on Financial Performance of Listed Deposit Money Banks in Nigeria - International Journal of Accounting Research and Financial Insights (IJARFI)","isPartOf":{"@id":"https:\/\/birpub.org\/ijarfi\/#website"},"datePublished":"2026-06-25T19:26:39+00:00","dateModified":"2026-06-25T20:02:27+00:00","description":"Background: Tax planning strategy constitutes a critical corporate financial management tool through which firms legally minimize tax liabilities to enhance profitability and shareholder value. In the Nigerian banking sector, where corporate income tax rates impose substantial fiscal burdens, deposit money banks deploy various tax planning mechanisms, including effective tax rate optimization, debt tax shields, thin capitalization strategies, and capital intensity management, to improve financial performance. Despite growing scholarly interest in corporate tax planning in Nigeria, the empirical literature on the specific effects of these strategies on the return on assets (ROA) of listed deposit money banks remains fragmented and methodologically inconsistent. Objectives: This study examined the effect of tax planning strategy on the financial performance of listed deposit money banks in Nigeria, specifically investigating the effects of effective tax rate, debt tax shield, thin capitalization, and capital intensity on return on assets. Method: An ex-post facto longitudinal panel data design was adopted. Secondary data were extracted from the audited annual reports and financial statements of 22 listed deposit money banks on the Nigerian Exchange Group (NGX) from 2013 to 2023, yielding 220 bank-year observations. Data were analyzed using panel generalized least squares (GLS) with cross-sectional SUR correction following confirmation of heteroskedasticity and autocorrelation. Pre-estimation tests including unit root (LLC and ADF Fisher), Hausman specification test, Pearson correlation, and VIF analysis were conducted. Results: Effective tax rate had a significant negative effect on ROA (\u03b2 = \u22120.312, p &lt; 0.05); debt tax shield had a significant positive effect on ROA (\u03b2 = 0.287, p &lt; 0.05); thin capitalization had a significant negative effect on ROA (\u03b2 = \u22120.198, p &lt; 0.05); and capital intensity had a significant negative effect on ROA (\u03b2 = \u22120.174, p &lt; 0.05). Conclusion: Tax planning strategies significantly determine the financial performance of Nigerian listed deposit money banks.","breadcrumb":{"@id":"https:\/\/birpub.org\/ijarfi\/journal_article\/effect-of-tax-planning-strategy-on-financial-performance-of-listed-deposit-money-banks-in-nigeria\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/birpub.org\/ijarfi\/journal_article\/effect-of-tax-planning-strategy-on-financial-performance-of-listed-deposit-money-banks-in-nigeria\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/birpub.org\/ijarfi\/journal_article\/effect-of-tax-planning-strategy-on-financial-performance-of-listed-deposit-money-banks-in-nigeria\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/birpub.org\/ijarfi\/"},{"@type":"ListItem","position":2,"name":"Effect of Tax Planning Strategy on Financial Performance of Listed Deposit Money Banks in Nigeria"}]},{"@type":"WebSite","@id":"https:\/\/birpub.org\/ijarfi\/#website","url":"https:\/\/birpub.org\/ijarfi\/","name":"International Journal of Accounting Research and Financial Insights (IJARFI)","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/birpub.org\/ijarfi\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/birpub.org\/ijarfi\/#\/schema\/person\/a01bf0d010e3d6c4df289f481abdb958","name":"birpo","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/456e5b4da19eedccc615c6da405c2fdd61087a592d2d3e354c20fdab032f97b2?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/456e5b4da19eedccc615c6da405c2fdd61087a592d2d3e354c20fdab032f97b2?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/456e5b4da19eedccc615c6da405c2fdd61087a592d2d3e354c20fdab032f97b2?s=96&d=mm&r=g","caption":"birpo"},"sameAs":["http:\/\/birpub.org"],"url":"https:\/\/birpub.org\/ijarfi\/author\/birpo\/"}]}},"_links":{"self":[{"href":"https:\/\/birpub.org\/ijarfi\/wp-json\/wp\/v2\/journal_article\/3894","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/birpub.org\/ijarfi\/wp-json\/wp\/v2\/journal_article"}],"about":[{"href":"https:\/\/birpub.org\/ijarfi\/wp-json\/wp\/v2\/types\/journal_article"}],"author":[{"embeddable":true,"href":"https:\/\/birpub.org\/ijarfi\/wp-json\/wp\/v2\/users\/1"}],"wp:attachment":[{"href":"https:\/\/birpub.org\/ijarfi\/wp-json\/wp\/v2\/media?parent=3894"}],"wp:term":[{"taxonomy":"journal_article_cat","embeddable":true,"href":"https:\/\/birpub.org\/ijarfi\/wp-json\/wp\/v2\/journal_article_cats?post=3894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}