DEFERRED TAX ACCOUNTING AND FINANCIAL PERFORMANCE: THE LISTED AGRICULTURAL FIRMS PERSPECTIVE IN NIGERIA

Nwaorgu, Innocent Augustine,, Mary-Fidelis Abiahu, Arzizeh T. Tapang, and Iormbagah, Jacob Aondohemba
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Nwaorgu, Innocent Augustine,: Department of Accounting, Postal: Michael Okpara University of Agriculture Umudike, Abia State, https://journal.citn.org/
Arzizeh T. Tapang,: Department of Accounting, Postal: Michael Okpara University of Agriculture Umudike, Abia State, https://journal.citn.org/
Iormbagah, Jacob Aondohemba: Department of Accounting, Postal: Michael Okpara University of Agriculture Umudike, Abia State, https://journal.citn.org/

Journal of Taxation and Economic Development, 2019, vol. 18, issue 3, 120-134

Abstract: The study examined the effect of deferred tax accounting on financial performance of listed agricultural firms in Nigeria. The study employed ex post facto research design using data from 4 quoted agricultural firms. The data span across 7 years ranging from 2011-2017 and were analyzed using simple linear regression. Findings from the study revealed that deferred tax accounting has a positive and significant relationship with the profitability of the listed firms. Further findings revealed that deferred tax has no statistical significant effect on both the cash flow and earnings per share of the listed agricultural firms in Nigeria Hence, based on the results obtained from this study it is recommended that; Firms in Nigeria should make tax planning as part of the firm’s strategic financial planning by employing effective accounting for deferred tax due the complexity of current accounting standard for deferred tax. Also the firms should effectively utilize all-inclusive tax planning strategies available in order to further influence their financial performance positively. Finally the study recommends that due to the complexity of accounting for deferred tax by firms in Nigeria, accounting standard developers should come up with a clear and precise rule for deferred tax accounting that will enable uniformity and seamless accounting for deferred tax by all firms.

Keywords: Cash-flow from Operations; Deferred Tax Liability; Earnings per share; Profit after tax (search for similar items in EconPapers)
Date: 2019
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