Deferred Tax Accounting and Financial Performance of Listed Consumer Goods’ Manufacturing Companies in Nigeria

This research examines the relationship between deferred tax accounting and financial performance of listed consumer goods’ manufacturing companies in Nigeria using data from 19 listed consumer goods companies selected judgmentally. The study adopts the panel regression technique to test three hypotheses stated in line with the specific objectives. Findings from the study revealed that, deferred tax asset and liability have a positive non- significant relationship with return on assets of listed consumer goods’ manufacturing companies in Nigeria. Further findings revealed that, deferred tax asset has positive non- significant relationship with leverage of listed consumer goods’ manufacturing companies in Nigeria, while, deferred tax liability has a negative non-significant relationship with leverage of listed consumer goods’ manufacturing companies in Nigeria. Finally, the study revealed that deferred tax asset has a positive non-significant relationship with earnings per share of listed consumer goods’ manufacturing companies in Nigeria, while, deferred tax liability has a negative non-significant relationship with earnings per share of listed consumer goods’ manufacturing companies in Nigeria. Hence it recommends that companies in Nigeria should look into available tax credits for particular assets and explore the possibility of taking advantage of such tax credits in order to reduce tax burden through tax deferment. Also, that the companies’ managers should always consider choosing the right capital combination, as it is imperative that the managers and tax planners explore tax incentives and investments that attract less taxes.