The role of CEO narcissism in tax avoidance strategies in Nigeria

This study examines the relationship between CEO narcissism and tax avoidance strategies among publicly listed firms in Nigeria. Using a panel dataset of 148 firms over the period 2015-2024, we investigate whether narcissistic CEO traits influence corporate tax planning behaviour. CEO narcissism is measured using unobtrusive proxies, including signature size and speech patterns, while tax avoidance is operationalized through the effective tax rate (ETR). Employing fixed effects panel regression models with robust standard errors, our findings reveal a significant positive relationship between CEO narcissism and tax avoidance behaviour, suggesting that narcissistic CEOs engage in more aggressive tax planning strategies. The results remain robust after controlling for firm-specific characteristics, including size, profitability, leverage, liquidity, age, growth opportunities, and asset tangibility. This study contributes to the emerging literature on behavioural corporate finance by providing empirical evidence from an African context, where institutional frameworks and governance mechanisms differ substantially from developed markets. The findings have important implications for corporate governance practices, regulatory oversight, and tax policy formulation in emerging economies.