ABSTRACT
This study explores the impact of taxes on the dividends of
shareholders in Nigeria. It identify how tax as government policy affects
investors shareholders and dividend decisions of companies. The study is
significance as it guides financial managers for dividend decisions, as well as
direct investors to plan on how to invest and make good returns on investment.
Tax, dividend, return on investment, arid earnings per share were used as
variables in the study as regression model is adopted to establish relationship
between the dependent variables and the independent variable. The population
size for the field work conducted for the purpose of the study is fifty (50),
as the sample size is ft)urty Four (44) following Taro Yemeni statistical
formula. Descriptive approach of data analysis is adopted to analyze the data
generated from the questioinaires distributed. Secondary data used in this
study were generated from published financial statement of First City Monument
Bank Plc, as regression analysis is employed for the analysis of the hypothesis
formulated for the purpose of the study. From the study carried out in this
research project, the researcher finds out that: Government Policy on Tax
strongly affects investors, shareholders, and dividend decisions of companies
in Nigeria. The study reveals that a situation where the tax rate, on dividend
is on the high side, investors will tend not to in vest their resources in such
business, as a result, investment will drastically reduce. Consequently, it is
recommended that government should consider the resultant effect that the rate
of tax will cause on investment in the economy before passing tax policies on
dividend, as unfavourable policies evident in high tax negatively affect the
dividends investors receive; a situation that is against wealth creation.
Companies should strive to maintain enough liquidity position, so as to be able
to meet up with dividend requirements, so as to keep the shareholders' wealth
maximization objective alive-shareholders are attracted to companies iii at pay
dividend to companies that do not.
NWAOBIALA, J (2021). Impact Of Government Tax Policy On Dividend To Shareholders As Means Of Wealth Creation (A Case Study Of First City Monument Bank Plc). Umuahia, In Abia State. Mouau.afribary.org: Retrieved Nov 28, 2024, from https://repository.mouau.edu.ng/work/view/impact-of-government-tax-policy-on-dividend-to-shareholders-as-means-of-wealth-creation-a-case-study-of-first-city-monument-bank-plc-umuahia-in-abia-state-7-2
JOHN, NWAOBIALA. "Impact Of Government Tax Policy On Dividend To Shareholders As Means Of Wealth Creation (A Case Study Of First City Monument Bank Plc). Umuahia, In Abia State" Mouau.afribary.org. Mouau.afribary.org, 25 Oct. 2021, https://repository.mouau.edu.ng/work/view/impact-of-government-tax-policy-on-dividend-to-shareholders-as-means-of-wealth-creation-a-case-study-of-first-city-monument-bank-plc-umuahia-in-abia-state-7-2. Accessed 28 Nov. 2024.
JOHN, NWAOBIALA. "Impact Of Government Tax Policy On Dividend To Shareholders As Means Of Wealth Creation (A Case Study Of First City Monument Bank Plc). Umuahia, In Abia State". Mouau.afribary.org, Mouau.afribary.org, 25 Oct. 2021. Web. 28 Nov. 2024. < https://repository.mouau.edu.ng/work/view/impact-of-government-tax-policy-on-dividend-to-shareholders-as-means-of-wealth-creation-a-case-study-of-first-city-monument-bank-plc-umuahia-in-abia-state-7-2 >.
JOHN, NWAOBIALA. "Impact Of Government Tax Policy On Dividend To Shareholders As Means Of Wealth Creation (A Case Study Of First City Monument Bank Plc). Umuahia, In Abia State" Mouau.afribary.org (2021). Accessed 28 Nov. 2024. https://repository.mouau.edu.ng/work/view/impact-of-government-tax-policy-on-dividend-to-shareholders-as-means-of-wealth-creation-a-case-study-of-first-city-monument-bank-plc-umuahia-in-abia-state-7-2