EconPapers    
Economics at your fingertips  
 

CORPORATE TAX MIX AND FINANCIAL PERFORMANCE OF LISTED MANUFACTURING FIRMS IN NIGERIA

Iormbagah, Jacob Aondohemba, Mary-Fidelis Abiahu () and Ibiam, Oti
Additional contact information
Iormbagah, Jacob Aondohemba: Michael Okpara University of Agriculture, Umudike, Abia State, Postal: Department of Accounting, https://research.icanig.org
Ibiam, Oti: Michael Okpara University of Agriculture, Umudike, Abia State, Postal: Department of Accounting, https://research.icanig.org

International Journal of Accounting and Finance (IJAF), 2021, vol. 10, issue 2, 64-84

Abstract: This study examines the effect of corporate tax mix on the financial performance of listed manufacturing firms in Nigeria. Data were collected from 10 listed manufacturing firms across sectors listed on the Nigerian Stock Exchange for the period of 2014 to 2018 based on firms with complete information for the years under review. The study adopts ex post facto research design and the use of both the Pearson correlation and multiple linear regression in analyzing the data. Findings revealed that tax mix has a positive insignificant effect on the net income of listed manufacturing firms in Nigeria while deferred tax has a negative insignificant effect on the net income of listed firms in Nigeria. Further, findings revealed that company income tax has a positive and significant effect on net income of listed manufacturing firms in Nigeria. The study implication is that the tax incentives available for manufacturing firms is not enough to boost manufacturing activities for business growth, and this compels the firms to defer their tax payment which ends up becoming deferred tax liabilities. It is recommended that government should provide more tax incentives that will reduce corporate income tax payment, encourage tax deferment to boost manufacturing activities to boost net income of the listed manufacturing firms to increase manufacturing activities. Also, manufacturing firms should explore the various tax incentives available to determine effective corporate tax mix.

Keywords: Company income tax; deferred tax; net income; tax incentives; tax mix (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://research.icanig.org/all-issue Full text (application/pdf)

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:ijafic:0054

Access Statistics for this article

International Journal of Accounting and Finance (IJAF) is currently edited by Ijoema Anasa and Ochuko Jeff Odesa

More articles in International Journal of Accounting and Finance (IJAF) from The Institute of Chartered Accountants of Nigeria (ICAN)
Bibliographic data for series maintained by Daniel Akanbi ().

 
Page updated 2022-05-10
Handle: RePEc:ris:ijafic:0054