Corporate Tax and Financial Performance: A Case of Listed Consumer Goods Firms in Nigeria

Adebayo Omolola Christiana and Olatunji Opefolu Francis
Additional contact information
Adebayo Omolola Christiana: Department of Accounting, Ekiti state university, Ado Ekiti.
Olatunji Opefolu Francis: Department of Accounting, Ekiti state university, Ado Ekiti.

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 5, 1928-1936

Abstract: This research investigated the effect of corporate tax on the financial performance of consumer goods companies in Nigeria. The study specifically evaluated the impacts of company income tax, capital gains tax, and withholding tax on financial performance. For data collection, secondary sources were utilized. The data for this study was sourced from the annual reports of five selected consumer goods firms in Nigeria, and it spanned a five-year timeframe from 2019 to 2023. The research employed inferential analysis techniques. The inferential analysis techniques included Pearson’s correlation analysis along with. The random effects estimation indicates a coefficient and a probability of 0.4283 and 0.005 (p 0.05) for capital gains tax, indicating that capital gains tax has a negative effect and does not significantly affect financial performance. The study concludes that corporate taxes present a positive and statistically significant relationship with the financial performance of consumer goods firms in Nigeria. The study recommends that manufacturing companies should be encouraged and informed about the importance of corporate taxation and methods to improve it. Corporate income tax, capital gains tax, and withholding tax create resources aimed at addressing the challenges businesses currently face while promoting innovation, ultimately leading to enhanced financial performance and advantages for society.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.rsisinternational.org/journals/ijriss/ ... ssue-5/1928-1936.pdf (application/pdf)
https://rsisinternational.org/journals/ijriss/arti ... ds-firms-in-nigeria/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bcp:journl:v:9:y:2025:issue-5:p:1928-1936

Access Statistics for this article

International Journal of Research and Innovation in Social Science is currently edited by Dr. Nidhi Malhan

More articles in International Journal of Research and Innovation in Social Science from International Journal of Research and Innovation in Social Science (IJRISS)
Bibliographic data for series maintained by Dr. Pawan Verma ().