Effect of Tax Transparency Reporting on Fairness and Investment Perceptions in Nigeria
Year: 2026
Type: article
Abstract: This study examines the effect of tax transparency reporting on fairness and investment perceptions among stakeholders in Nigeria. Using panel regression analysis on nine firms over 35 years (1991-2025), we investigate how enhanced tax disclosure practices influence stakeholder trust and investment decisions. The research employs an ex post facto design with firm-level data, controlling for size, profitability, leverage, growth opportunities, age, and liquidity. Results reveal a statistically significant positive relationship between tax transparency reporting and fairness and investment perceptions (β = 0.423, p < 0.01), suggesting that comprehensive tax disclosure enhances stakeholder confidence and perceived corporate legitimacy. The study contributes to the emerging literature on corporate transparency in developing economies and provides empirical evidence for policymakers and corporate practitioners regarding the value of enhanced tax reporting. Findings indicate that firms with higher tax transparency scores demonstrate improved stakeholder perceptions, which have implications for capital allocation, corporate governance, and regulatory frameworks in Nigeria's evolving economic landscape.
Author: Yahaya, Onipe Adabenege
Institution: Nigerian Defence Academy
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7127335505
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