TAX PLANNING AND EARNINGS MANAGEMENT IN NIGERIAN DEPOSIT MONEY BANKS

This study examine tax planning and earnings management in Nigeria Deposit Money Banks. The research design for this study was cross sectional/longitudinal design. Data obtained from secondary source were analyzed using E-view 9.0 Computer Software. A multiple linear regression model was used to establish the significance of the model. Findings revealed that; tax saving significantly affect earnings management in Nigerian deposit money banks; effective tax rate does not significantly affect earnings management in Nigerian deposit money banks; firm size does not significantly affect earnings management in Nigerian deposit money banks. In line with the findings of the research, the study recommends that the owners of the funds (shareholders) should be involved in effective monitoring of the activities of the managers through effective governance practices and control because this will reduce their evil tendencies of diverting the resources of the organization; Deposit money banks should endeavour to use the proceeds of their tax savings wisely because this will enhance the value of the bank, also, Firms should cut down their debt burden. Management should emphasize more on equity financing so as to reduce the effect of restrictive covenant and high interest cost of debt capital.