The Impact of Direct Taxes on the Financial Performance of Listed Consumer Goods Firms in Nigeria.
Publication Date: 23/08/2024
Author(s): Jimoh Tajudeen Shola , Adesina Omolola Kafayat.
Volume/Issue: Volume 7 , Issue 3 (2024)
Abstract:
This study investigates the relationship between direct taxes and the financial performance of listed consumer goods firms in Nigeria. Using a quantitative research approach, we analyzed data from the financial statements of 15 listed consumer goods firms in Nigeria over a five-year period (2017-2021). Our results show that direct taxes have a significant negative impact on the financial performance of listed consumer goods firms in Nigeria, as measured by profitability and investment decisions. Specifically, we found that: A 1% increase in direct taxes leads to a 0.8% decrease in profitability A 1% increase in direct taxes leads to a 0.6% decrease in investment decisions Our findings suggest that policymakers and regulatory bodies should consider reducing direct tax rates to improve the financial performance of listed consumer goods firms in Nigeria.
Keywords:
Educational tax, Company income tax, value added tax.
