This study set out to evaluate whether the entrenchment or alignment hypothesis predict the relationship between ownership concentration and tax aggressiveness in non-financial firms listed in Nigeria. Using the correlational research design and data filtering technique, data was sourced from annual reports of a sample of 960 firm-year observations for a period of 12 years (2008)(2009)(2010)(2011)(2012)(2013)(2014)(2015)(2016)(2017)(2018)(2019). Tax aggressiveness (TAXAGG) was measured using the cash flow effective tax rate while ownership concentration was captured using two measures-ratio of shares held by shareholders with at least 5% shares to total outstanding shares and an indicator variable of 1 if the ratio of block holdings is in excess of the mean value; otherwise 0. The censored tobit regression technique was used to analyse the data and the finding showed that increases in ownership concentration is significantly associated with increases in tax aggressiveness ceteris paribus. The study therefore concludes that the entrenchment hypothesis predicts the relationship between ownership concentration and tax aggressiveness. The study recommends among others that those charged with governance should monitor closely the ownership concentration level and prevent situations where equity and voting rights are concentrated in the hands of a few as this may shift the agency conflict from the type 1 conflict to the type 2 conflict.
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