ABSTRACT
This study examined the impact of tax planning on the financial performance of 10 logistics firms
in Nigeria using panel data from 2018 to 2022.the study investigates the relationship between tax
planning strategies and financial performance metrics such as return on equity (ROE). The study
focused on effective tax rate (ETR), leverage (LEV), firm size (FMS), and firm age (FMA) as key
variables influencing return on equity (ROE). Employing panel least squares analysis, the study
finds that higher ETR correlates negatively with ROE, highlighting the importance of strategic tax
management. Leverage negatively affects ROE while increasing ETR, underscoring the dual
financial implications of debt. Conversely, larger firms benefit from economies of scale but face
higher ETR, necessitating tailored tax strategies. Firm age shows no significant impact on ETR
but correlates negatively with ROE. Policy recommendations include enhancing tax planning
strategies, promoting prudent leverage management, supporting scalability and efficiency, and
simplifying tax regulations to bolster the financial health and competitiveness of Nigeria's logistics
firms.
