FISCAL POLICY AND FINANCIAL REPORTING OF OIL AND GAS COMPANIES IN NIGERIA: A STUDY OF CONOIL PLC

Abstract

The study examines fiscal policy and financial reporting of Conoil Plc. The study's goal is to investigate the link between tax planning, and financial reporting at Conoil Plc. For the gathering of secondary data from 2001 to 2021, the study applies a longitudinal research design using Logistic regression for the empirical analysis. The empirical evidence indicates that tax planning measured by cash effective tax rate has a positive and insignificant relationship with financial reporting even at the 10% level of significance across the models (Probit, Logit, and Extreme value regressions). And, even at the 10% threshold of significance, tax planning as assessed by income effective tax rate shows a negative and negligible link with financial reporting across all models (Probit, Logit, and Extreme value regressions). As a result, the research suggests that Conoil Plc.'s financial management and accountants combine deferred tax liabilities for the intended purpose since it helps provide greater cash flow to the organization for satisfying operational operations. The report also proposes that Conoil plc.'s management use tight tax procedures to mitigate the impact of the cash effective tax rate and the income effective tax rate.