Corporate Taxation and Financial Performance of Listed Consumer Goods Firms in Nigeria

Jamila Muktar
Department of Accounting
Gombe State University
08065403366
jamilamukhtar14@gmail.com
Prof. Liman Mohammed
Department of Accounting
Bayero University, Kano
08036423442
mohdliman2@yahoo.com
Hauwa Saidu
Department of Accounting
Gombe State University
08036108842
hauwasaidu33@yahoo.com
Aliyu Muhammad
Department of Accounting
Gombe State University
08038136215
aliyugombe05@gmail.com

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 eleven years (2010-2020).
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, ROE and ROCE). Firm size exhibits a negative and
significant relationship with ROE and ROCE but the relationship is negative and not significant
with ROA, Further, Leverage exhibits a negative and significant relationship with ROA, but the
relationship is negative and not significant with ROE and ROCE. Age reveals 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.

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