Corporate Taxes and Financial Performance of Quoted Manufacturing Companies in Nigeria

IF 3 Q2 BUSINESS, FINANCE

Journal of Public Budgeting, Accounting and Financial Management Pub Date : 2023-09-13 DOI:10.56201/jafm.v9.no3.2023.pg81.105

Gogo Erasmus Eneisik, Prof. L. C. Obara, Moses Kpane Uwikor

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Abstract

The study empirically investigated the effect of corporate taxes on financial performance of quoted manufacturing companies in Nigeria. The population of the study consists of sixty quoted manufacturing companies in Nigeria. The study adopts purposive sampling techniques to select thirty quoted manufacturing companies as a sample size. Secondary data was obtained from audited annual financial reports of quoted manufacturing companies in Nigeria from 2006-2020. Hypotheses formulated were tested using panel least squares regression through pooled effect, fixed effect, and random effect, determined by the Hausman test, fixed effect regression was preferred for results interpretation with the aid of Eviews 10 econometric statistical software. Findings show that companies’ income tax, capital gains tax, and tertiary education tax had insignificant effects on return on equity of quoted manufacturing companies in Nigeria. Companies’ income tax and tertiary education tax had insignificant effect on return on capital employed of quoted manufacturing companies in Nigeria. Companies income tax and tertiary education tax had insignificant effect on net profit margin of quoted manufacturing companies in Nigeria. Capital gains tax had significant effect on return on capital employed and net profit margin of quoted manufacturing companies in Nigeria. The study concludes that corporate taxes have insignificant effect on financial performance of quoted manufacturing companies in Nigeria. The study recommends, among others, that the government should introduce new tax incentives, tax exemptions, tax allowances, tax relief, tax rebates, and tax shelters for corporate taxes. Capital gains tax should be scrapped to enable companies to plough back profit on sale of assets into their business operations. The government should create a corporate tax management database through modern information technology to ensure effective and efficient corporate tax administration.

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尼日利亚上市制造业公司的公司税和财务业绩

本研究实证考察了企业税对尼日利亚上市制造企业财务绩效的影响。研究对象包括尼日利亚60家上市制造公司。本研究采用有目的的抽样方法，选取30家制造业上市公司作为样本。二级数据来自尼日利亚上市制造公司2006-2020年经审计的年度财务报告。采用集合效应、固定效应和随机效应三种方法对所提出的假设进行面板最小二乘回归检验，经Hausman检验确定，采用Eviews 10计量统计软件对结果进行解释时首选固定效应回归。研究结果表明，公司所得税、资本利得税和高等教育税对尼日利亚上市制造业公司的股本回报率影响不显著。公司所得税和高等教育税对尼日利亚制造业上市公司的资本回报率影响不显著。公司所得税和高等教育税对尼日利亚上市制造企业净利润率的影响不显著。资本利得税对尼日利亚上市制造企业的已动用资本回报率和净利润率有显著影响。研究发现，企业税对尼日利亚制造业上市公司的财务绩效影响不显著。该研究建议，除其他外，政府应该引入新的税收激励、税收豁免、税收津贴、税收减免、退税和企业税避税。应取消资本利得税，使企业能够将出售资产的利润重新投入到业务运营中。政府应利用现代信息技术建立企业税收管理数据库，确保企业税收管理的有效性和高效性。

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来源期刊

Journal of Public Budgeting, Accounting and Financial Management Social Sciences-Public Administration

CiteScore

7.80

自引率

19.40%

发文量

期刊介绍： Published four times a year, the Journal of Public Budgeting, Accounting & Financial Management (JPBAFM) is an international refereed journal which aims at advancement and dissemination of research in the field of public budgeting, accounting, auditing, financial and performance management. The journal is committed to be an outlet for rigorous conceptual and empirical works aimed at challenging and innovating the field of accounting, management and governance in entities operating in the public sphere or public-private sphere (territorial government entities, universities, schools, hospitals as well as state-owned enterprises, hybrid organizations, public and private partnerships, non-profit organizations, NGOs, etc.).