Corporate Governance Practices and Tax Planning among Manufacturing and Allied Firms Listed at the Nairobi Securities Exchange, Kenya

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dc.contributor.advisorAmbrose Jagongoen_US
dc.contributor.advisorJohn Mungaien_US
dc.contributor.authorAwuor, Ochola, Saphina
dc.date.accessioned2022-09-06T07:41:00Z
dc.date.available2022-09-06T07:41:00Z
dc.date.issued2022
dc.descriptionA Thesis Submitted to the School of Business in Partial Fulfillment of the Requirements for the Award of Degree of Master of Science in Finance of Kenyatta University, April 2022en_US
dc.description.abstractThe manufacturing and allied sector in Kenya has been growing at a slower rate than the economy and the Gross Domestic Product has been deteriorating with time. From the year 2010, the sector has witnessed some large manufacturing firms either relocating or restructuring their operations owing to heavy taxation and unfavorable operating environment. Taxes represent a significant cost to firms; it affects a firm’s profitability and almost all financing decisions hence actions designed for reducing corporate tax burden through tax planning are regarded highly. The separation of ownership from control in public listed companies means that tax planning occurs within agency framework. Corporate governance practices play key roles in the management of public companies’ affairs with the overall objective of wealth maximization. The Capital Market Authority has continuously issued corporate governance guidelines for public institutions in recognition of the guideline’s contribution in the effective management of these companies and also in response to the changing business environment alongside the motivation to position Kenyan local code of ethics to worldwide unparalleled practices and to advance institutional strengthening for listed companies. Despite the Manufacturing sector registering stagnation and declining profits for the last five years, there is reawakened stake in the sector through the Big 4 Agenda which seeks to increase the Gross Domestic Product input of the sector to fifteen percent by 2022. The purpose of this investigation was to assess the influence of corporate governance practices on tax planning among manufacturing and allied firms listed on the Nairobi Stock Exchange, Kenya. The study's main objective was to examine how board size, independence, external audit quality, and institutional ownership influenced tax planning among manufacturing and allied firms listed on Kenya's Nairobi Securities Exchange. The study further examined the moderating influence of firm size on the relationship between the corporate governance practices and tax planning. This study was based on Agency Theory, Stakeholder Theory, Upper Echelons Theory, Resource Dependency Theory and Tax Planning Theory. The target population consisted of nine manufacturing and allied firms listed at the NSE. Census approach was employed to obtain secondary panel data from 2010 to 2019. Descriptive analysis obtained an ETR higher than the statutory tax rate whereas regression analysis results revealed that: board size had an insignificant positive influence, board independence had significant positive influence, external audit quality had an insignificant positive influence while institutional ownership had significant negative influence on tax planning among manufacturing and allied companies quoted at the Nairobi Securities Exchange, Kenya. It was also observed that firm size had a positive moderating effect on the relationship between board size, board independence, external audit quality, institutional ownership and tax planning among the firms under the studyen_US
dc.description.sponsorshipKenyatta Universityen_US
dc.identifier.urihttp://ir-library.ku.ac.ke/handle/123456789/24113
dc.language.isoenen_US
dc.publisherKenyatta Universityen_US
dc.subjectCorporate Governanceen_US
dc.subjectPracticesen_US
dc.subjectTax Planningen_US
dc.subjectManufacturingen_US
dc.subjectAllied Firms Listeden_US
dc.subjectNairobi Securities Exchangeen_US
dc.subjectKenyaen_US
dc.titleCorporate Governance Practices and Tax Planning among Manufacturing and Allied Firms Listed at the Nairobi Securities Exchange, Kenyaen_US
dc.typeThesisen_US
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