Effect of Company Income Tax on Corporate Performance of Listed Manufacturing Firms in Nigeria
DOI:
https://doi.org/10.14738/assrj.101.13769Keywords:
Corporate Income Tax (CIT), Profit After Tax(PAT), Change in Shareholders Fund ( CSF), Returns On Equity ( ROE)Abstract
The conundrum of the Nigerian economy is traceable to its manufacturing sector which is expected to stimulate the value-added economy and serve as a catalyst for sustainable economic transformation. Regrettably, Nigeria's Manufacturing sector has been neglected without a clear policy direction with attendant annihilation of the sector from the growth process. This becomes evident following the low share of manufacturing sector contribution to GDP and plummeted employment generation capacity of the sector (Ogudu, et at., 2018). Nigeria's ostentatious importation of manufactured products and weak export base of finished goods remains an undeniable signal to the inchoate weakness of the manufacturing sector. Meanwhile, the weak performance of the manufacturing sector is also evidenced in the low share of non-oil exports to total exports earnings, coupled with high share of manufactured goods in total imports (Ogudu, et at., 2018).
References
Adejare, A. T. (2015). The analysis of the effect of corporate income tax (CIT) on revenue profile in Nigeria. American Journal of Economics, Finance and Management, 1(4), 312-319.
Agbetunde, A. L. (2010). Principles and practice of Nigeran personal income tax. Lagos: Feetal Consulting.
Chude, I. D., & Chude, N. P. (2015). Impact of company income taxation on the profitability of companies in Nigeria: A case study of Nigerian breweries. European Journal of Accounting, Auditing and Finance Research, 3(8), 1-11.
Cordelia, O. O., & Amah, K. O. (2018). Corporate Tax and Profitability of Deposit Money Banks in Nigeria. Journal of Accounting, Business and Finance Research, 47-55.
Edame, G. E., & Okoi, W. W. (2014, july). The impact of taxation on investment and economic development in Nigeria. Academic Journal of Interdisciplinary Studies, 3(4), 204.
Ezejiofor, R. A. & Adigwe, P. K. & Echekoba, F. N. (2015). Tax as a fiscal policy and manufacturing company's performance as an engine for economic growth in Nigeria. European Journal of Business, Economics and Accountancy, 3(3), 1-12.
Ezugwu, C.I, & Akubo, D. (2014). Analysis of the effect of high corporate tax rate on the profitability of corporate organisations in nigeria – A study of some selected corporate organisations. Mediterranean Journal of Social Sciences, 5(20), 310.
Gatsi, J. G., Gadzo, S. G., & Kportorgbi, H. K. (2013). The effect of corporate income tax on financial performance of listed manufacturing firms in Ghana. Research Journal of Finance and Accounting, 4(15), 118-124.
Ileana, P. C., Aurelia, S., Minzu, V. G., Popa, A. F., & Niculescu, A. M. (2016). Research of Corporate Tax Impact on Financial Performance. Case of Companies Listed on Bucharest Stock Exchange. Management and Economics Review, 1(2), 203-216.
Khalaf Al-Taani (2013). The relationship between capital structure and firm performance: evidence from Jordan. Journal of Finance and Accounting. 1(3), 41-45. doi: 10.11648/j.jfa.20130103.11
Kurawa, J. M., & Saidu, H. (2018). Corporate tax and financial performance of listed Nigerian consumer goods. Journal of Accounting and Financial Management, IIARD-International Institute of Academic Research and Development, 4(4), 30-43.
Lyndon, M. E. & Paymaster, F. B. (2016). The impact of company income tax and value-added tax on economic growth: evidence from Nigeria. European Journal of Accounting, Auditing and Finance Research, 4(7), 106-112.
Nwaorgu, I. A., & Abiahu, M. F. C. (2020). Effect of Corporate Tax on Sustainable Financial Performance of Listed
Firms in Nigeria. Abiahu, MC & Nwaorgu, IA (2020). Effect of Corporate Tax on Sustainable Financial Performance of Listed Firms in Nigeria. Journal of Taxation and Economic Development, 19(1), 50-63.
Ogudu, G. N., Kingsley, I., & Akinlosotu, N. T. (2018). Corporate income tax and manufacturing sector performance in Nigeria: a panel data analysis. CBN Bullion, 42(4), 28-36
Olaoye, O. C., & Oluwatoyin , A. E. (2019). Effect of corporate taxation on the profitability of firms in Nigeria. Journal of Economics and Behavioral Studies, 11(1), 191-201.
Oloidi, G. (2014). Company Income Tax and InvestmentDecisions: A Behavioural Approach. Journal of Business and Management, 16(7), 11-19.
Omodero, C. O., & Amah , O. K. (2018). Corporate Tax and Profitability of Deposit Money Banks in Nigeria. Journal of Accounting, Business and Finance Research, 3(2), 47-55.
Onuorah, A. C., & Chigbu, E. E. (2013). A comparative analysis of the impact of corporate taxation on company’s reserve and dividend policy in Nigeria: 2000-2011. Journal of Developing Country Studies, 3(1), 154-161.
Otwani, M. N., Namusonge, G. S., & Elizabeth, N. M. (2017). Effect of corporate income tax on financial performance of companies listed on the Nairobi securities exchange in Kenya. International Journal of Social Sciences and Information Technology, 3(8), 2467-2477. Pricewaterhousecoopers. (2021, January 28). Corporate - Taxes on corporate income. Retrieved from https://taxsummaries.pwc.com/nigeria/corporate/taxes-oncorporate-income
Ra'Ed, M., Idries, J., & Mohammad, T. (2015). Accounting vs Market Based Measures of Firm Performance related to Information Technology Investments. International Review of Social Sciences and Humanities, 9(1), 129-145.
Ojelabi, S. A. (2023). Effect of Company Income Tax on Corporate Performance of Listed Manufacturing Firms in Nigeria. Advances in Social Sciences
Tomola, M. O., Adedisi, T. E. & Olawale, F. K. (2012). Bank Lending, Economic Growth and the performance of the Manufacturing Sector in Nigeria. European Scientific Journal, 8(3), 19-34
Wigmore, I. (2015). Corporate performance. Retrieved from https://whatis.techtarget.com/definition/corporateperformance#:~:text=Corporate%20performance%20is%20a%20composite,financial%2C%20market%20and%20shareholder%20performance.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Sunday Adeyemi Ojelabi
This work is licensed under a Creative Commons Attribution 4.0 International License.
