Corporate Tax and Financial Performance: Evidence from Listed Consumer Goods Firms in Nigeria

K.S., Williams; Onmonya, Lucky Otsoge; Ebire, K.

doi:10.52589/ajafr-f1wxfxu3

Cited by 1 publication

(2 citation statements)

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“…Study on company income tax in relation to financial performance in various sectors of the economy both in advanced and developing countries is inconclusive as many revealed positive and significant relationship while others revealed negative relationship. Study conducted by Williams, Onmonya, and Ebire (2023) on Nigeria listed consumer goods companies from 2011 to 2021 revealed that company income tax has negative effect on financial performance while education tax has a significant positive effect on financial performance. The study however, concluded that corporate tax has a statistically significant effect on the financial performance of consumer goods firms in Nigeria.…”

Section: Company Income Taxmentioning

confidence: 99%

“…A lot have been written on taxation and performance of companies in Nigeria, with special reference to manufacturing industries, Oil and gas, banking and other financial institution (Taiwo & Oyedokun (2022) ' Lormbagah, Abiahu, & Ibiam (2021); Williams, Onmonya and Ebire, (2023)), yet very little research work focused on listed Information and Communications Technology (ICT) companies in the Nigeria. Reason adduced to this might be because of newness of this sector in Nigeria compared to other sectors of Nigeria's economy.…”

Section: Introductionmentioning

confidence: 99%

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Corporate Taxes and Financial Performance of Listed Information and Communication Technology Companies in Nigeria

O.R.,

K.L.

2023

African Journal of Accounting and Financial Research

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This paper examined the effect of corporate taxes and financial performance of listed information and communication technology companies (ICT) in Nigeria. The corporate taxes were proxied by company income tax and education tax while financial performance was proxied by profit after tax. Content analyses of the annual report of sampled companies were carried out using descriptive and inferential statistics. An ex-post facto research design was adopted for the study. A simple random sampling technique was used to select the sample. Data were obtained from annual reports and accounts of sampled ICT firms in Nigeria for a period of five years (2018-2022). Regression was used to test the hypothesis at a significance level of 5%. The findings showed that corporate taxation positively and significantly affected the financial performance of information and communication technology companies in Nigeria (p-value =0.0000; <0.05). The findings also showed that company income tax was positively and significantly related to financial performance in quoted information and communication technology companies in Nigeria. However, education tax has significant negative effect on financial performance of information and technology companies in Nigeria. The Adjusted R Square of 0.9974 showed that 0.3% is outside financial performance matrix and was recommended that the government should encourage voluntary payment of taxes with the introduction of reduced tax rates, public awareness, reduction of ambiguity in the tax law and provision of adequate infrastructural facilities which tax payer’s fund were used to provide for the society to encourage taxpayers’ compliance culture.

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Section: Company Income Taxmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%