Tax Incentives and Return on Asset of Manufacturing Companies in Southwest, Nigeria: The Moderating effect of Firm Size

Oyedokun Godwin Emmanuel (), Olaoye Mathew () and Fowokan Titilayo Eni-Itan ()
Additional contact information
Oyedokun Godwin Emmanuel: Department of Management & Accounting, Postal: Lead City University Ibadan,, Nigeria, https://www.afarng.org/jfafi/
Olaoye Mathew: Department of Management & Accounting, Postal: Lead City University Ibadan,, Nigeria, https://www.afarng.org/jfafi/
Fowokan Titilayo Eni-Itan: Department of Management & Accounting, Postal: Lead City University Ibadan,, Nigeria, https://www.afarng.org/jfafi/

Journal of Forensic Accounting & Fraud Investigation (JFAFI), 2022, vol. 7, issue 2, 41-67

Abstract: Tax incentives have a significant impact on the asset returns of manufacturing companies. Understanding this impact, particularly in the context of Southwest Nigeria, is crucial for policymakers and company executives. Moreover, the moderating role of firm size in this relationship needs to be considered for valuable insights. This study aims to evaluate the impact of tax incentives on the financial performance and asset returns of manufacturing companies in Southwest Nigeria, The study utilized a cross-sectional design and collected data from finance or accounting employees in top management positions of manufacturing companies in Lagos and Oyo States. The collected data was analyzed using statistical techniques, including regression analysis. The results showed that tax incentives, such as capital allowance, investment allowance, corporation allowance, and export promotion allowance, significantly influenced the return on assets of manufacturing companies. Firm size was found to moderate the relationship between tax incentives and financial performance. Based on the findings, recommendations were made, including the need to reconsider the economic value of capital allowance incentives and the importance of considering firm size in tax incentive policies.

Keywords: Taxation; Tax incentives; Manufacturing companies; Performance; Return on asset (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.afarng.org/jfafi/ Full text (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:ris:jfaafi:0063

Access Statistics for this article

Journal of Forensic Accounting & Fraud Investigation (JFAFI) is currently edited by Godwin Emmanuel Oyedokun, Muhammad Akaro Mainoma and Suleiman A. S. Aruwa

More articles in Journal of Forensic Accounting & Fraud Investigation (JFAFI) from Association of Forensic Accounting Researchers (AFAR) Contact information at EDIRC.
Bibliographic data for series maintained by Daniel Akanbi ().