International Journal of Research in Management, Accounting and Financial Studies
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Vol. 11 No. 2 (2026): April - June
Articles

Board Monitoring Mechanisms and Effective Tax Rates: Evidence from Nigerian Deposit Money Banks

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  • Adeleye, Tope James,
  • Oladipo, Blessing Ugochi,
  • Ogwu, Harry UBA,
  • Idris, Ibrahim Kemi,
  • Ogaji, Friday Ateko

Published 2026-04-30

Keywords

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Abstract

This study examines the effect of board monitoring mechanisms on the effective tax rates (ETR) of Nigerian deposit money banks. Specifically, it investigates the influence of board meeting frequency and board gender diversity on firms’ tax outcomes. Using an ex post facto research design, panel data were collected from thirteen listed deposit money banks in Nigeria over the period 2012–2024. The study employed a random effects regression model to analyze the relationship between the variables. The findings reveal that board meeting frequency has a negative but statistically insignificant effect on ETR, suggesting that increased board activity does not necessarily translate into improved tax compliance. In contrast, board gender diversity has a positive and statistically significant effect on ETR, indicating that higher female representation on boards enhances tax compliance and reduces tax avoidance. The study concludes that while board activity alone may be insufficient, board composition particularly gender diversity plays a crucial role in influencing corporate tax behavior. It recommends promoting gender diversity and improving the effectiveness of board processes to strengthen corporate governance and enhance tax compliance in the Nigerian banking sector.

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