IMPACT OF CORPORATE TAX AND FIRM ATTRIBUTES ON THE PERFORMANCE OF MANUFACTURING FIRMS IN NIGERIA

Christiana Andrew

Abstract


This study examined the impact of corporate tax and firm characteristics on the performance of quoted manufacturing firms in Nigeria for a period of 10 years using 4 manufacturing firms in the Nigeria Stock Exchange Market. Regression analysis was used to run the secondary data extracted from financial reports of the concerned manufacturing firms. Descriptive statistics and correlation matrix was employed to identify the normality of data and relationship existing between variables. Corporate Tax, Firm Size and Firm Age were used as independent variables while Return on Assets was employed to proxy the concept of performance. The findings revealed that Corporate Tax is positively impacting on profitability of quoted manufacturing firms at 1% significance. Firm Size is not significantly impacting on profitability of manufacturing firms. Firm Age is positively impacting on the profitability of quoted manufacturing firms at 10% significance. Based on the above findings, the researcher recommends that the Government should empower small and medium manufacturing firms by providing enabling environment, soft loans and other equipment needed for them to improve in their businesses which will also increase in revenue generation through the taxes that such firms will pay to the government. Also the management of manufacturing firm should utilize its assets efficiently as excess production, poor inventory management will lead to a decline in profitability of the firm. 

Keywords


Corporate Tax, Firm Size, Firm Age, Performance,

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References


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