EFFECT OF CORPORATE TAX ON SUSTAINABLE FINANCIAL PERFORMANCE OF LISTED FIRMS IN NIGERIA

Innocent Augustine NWAORGU, Kingsley S. Oyekezie and Mary-Fidelis Abiahu
Additional contact information
Innocent Augustine NWAORGU: Department of Accounting, Postal: College of Management Sciences, Michael Okpara University of Agriculture Umudike. Umuahia, Abia state, https://journal.citn.org/
Kingsley S. Oyekezie: Alex Ekwueme Federal University,, Postal: Ndufu-Alike. Ebonyi State., https://journal.citn.org/

Journal of Taxation and Economic Development, 2020, vol. 19, issue 1, 50-63

Abstract: The study examined the effect of corporate tax on the sustainable financial performance of listed firms in Nigeria, specifically the listed manufacturing firms. The study employed ex post facto research design using data from 10 listed manufacturing firms. The data span across 5 years ranging from 2013-2017 and were analyzed using simple linear regression. Findings from the study revealed that corporate tax payment has no significant effect on the return on equity of firms. Further findings revealed a positive and significant effect of corporate tax payment on the debt to equity ratio of the listed firms. Hence, based on the results obtained from this study it is recommended that Investors in the manufacturing sector should use their tax pay-out policy as a tool for financing decision as it greatly affects the firm's debt to equity ratio (Capital combination) decision making. Also, they should encourage the prompt payment of tax as it has no significant effect on their returns but in turn, increases the market value of the firms.

Keywords: Corporate tax; Return on Equity; Debt to Equity Ratio. (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journal.citn.org/ 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:jotaed:0040

Access Statistics for this article

Journal of Taxation and Economic Development is currently edited by Rafiu Oyesola Salawu, Godwin Emmanuel Oyedokun and Mary-Fidelis Chidoziem Abiahu

More articles in Journal of Taxation and Economic Development from Chartered Institute of Taxation of Nigeria Contact information at EDIRC.
Bibliographic data for series maintained by Daniel Akanbi ().