Granger Causality between Corporate Tax Planning and Firm Value of Non- Financial Quoted Companies in Nigeria
Rafiu Oyesola SALAWU, Lawrencia Olatunde OGUNDIPE, Olufemi YEYE

Abstract
The study examined the causal relationship between corporate tax planning and firm value of non-financial quoted companies in Nigeria between 2004 and 2014. A panel data of financial characteristic of 50 non-financial quoted firms spreading over ten sectors were collected from the audited annual financial reports of the sampled firms and the Nigerian Stock Exchange fact books. The pairwise VAR Granger Causality test conducted between tax planning and firm value shows that there is no causality that between tax planning and firm value within the sampled period at 5% level of significance. This implies tax planning did not granger causes firm value and vice versa. This result indicates that causality do not runs in any direction between Tax Planning (ETR) to Firm Value (Tobin Q). These suggest that there is a significant non-directional causality between Tax Planning (ETR) to Firm Value (Tobin Q) meaning that the two null hypotheses are accepted. That is, there was no significant casual nexus between Tax Planning (ETR) to Firm Value (Tobin Q).

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