THE EFFECT OF CORPORATE TAX ON DIVIDEND POLICY OF LISTED CONSUMER GOODS COMPANIES IN NIGERIA

Mohammed Ibrahim, Hauwa Saidu

Abstract


The study assessed the effect of corporate taxation on dividend policy of listed consumer goods companies in Nigeria over the periods 2009 to 2013. Data for the study was collected from the annual reports and accounts of the companies. A panel data methodology was employed specifically using pooled OLS, fixed effect and random effect regression methods in analyzing the data. The paper demonstrated that corporate taxation and board structure have no effect on dividend policy of firms.  The results also imply that performance of companies is an important determinant of dividend policy. The study recommended that companies should pay more attention to other determinants of dividend like liquidity and not to concentrate on taxes since taxes have no effect on dividend policy. Also companies should devise other means of generating funds by expansion and diversification in order to boost their earnings.


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