Effect Of Corporate Tax Payout On Profit Sustainability Of Listed Companies In Nigeria

ABSTRACT

The main objective of this study is to examine the effect of corporate tax on the sustainable financial performance of listed firms in Nigeria. This study adopts ex-post facto research design which involves the ascertaining of the impact of past factors on the present happening or event. The research work adopts the secondary source of data in obtaining all the data needed for the study. The simple linear regression technique using ordinary least square regression (QLS) method is adopted in investigating the relationship between the dependent and independent variables. In the course of this study, I found out that corporate tax payout has a positive relationship with the return on equity of listed manufacturing firms and has a statistical insignificant effect on the return on equity of the listed manufacturing firms in Nigeria. In conclusion, corporate tax payout has a positive insignificant effect on the return on equity of listed manufacturing firms in Nigeria and therefore recommend that Investors in the manufacturing sector should use their tax pay out policy as a tool for financing decision as it greatly affects the firm debt to equity ratio combination decision making.