Corporate Taxation and Financial Performance of Listed Consumer Goods Firms in Nigeria
Jamila Muktar Department of Accounting Gombe State University 08065403366
firstname.lastname@example.org Muhammad Liman Muhammad Department of Accounting Bayero University, Kano 08036423442
Hauwa Saidu Department of Accounting Gombe State University
Aliyu Muhammad Department of Accounting Gombe State University 08038136215
This study examined the impact of corporate taxation on financial performance of listed consumer goods companies in Nigeria. Correlational research design was adopted and data was extracted from the annual reports and accounts of the companies for the period of ten years (2010-2019). The data were analyzed using multivariate regression analysis. The findings revealed that corporate tax has a positive and significant relationship with financial performance (ROA, ROE and ROCE), the relationship is statistically significant implying that an increase in corporate tax will increase the financial performance (ROA and ROCE). Firm size exhibits a negative and significant relationship with ROA and ROCE but the relationship is negative and not significant with ROE, Further, Leverage exhibits a negative and significant relationship with ROA, but the relationship is positive and not significant with ROE, but positive and significant with ROCE. Age exhibits a negative but not significant relationship with ROA, ROE and ROCE. The study concluded that the need for corporate tax payment cannot be overemphasized considering its influence on financial performance. The study, recommended that management should not hesitate to pay corporate tax because of its influence on corporate financial performance.
Keywords: Corporate tax, Financial performance, Consumer goods companies, Return on asset.