EFFECTS OF COMPANY INCOME TAX ON CORPORATE INVESTMENT DECISION (A STUDY OF NIGERIAN BREWERIES PLC)

ABSTRACT

This unique piece of work is designed to highlight on the effect of company income tax on corporate investment decision. Nigeria breweries plc was used as the case study.  The objective of this study centred on knowing the extent to which income tax on corporate investment affected management decisions. It is considered  very  essential  particularly  to  corporate  investors  who  do  not determine the effect of corporate income tax before embarking on investment decision making. Hypothesis were formulated and tested by researcher; data gathered in the field survey-using questionnaire were analysed using random sampling techniques and 'the  chi-square statistical tool. Some the findings from the study were that adequate knowledge of the effect of company income tax on investment    helps  investors  and  manager  in  making  efficient  and  effective investment decision, and also that investors believed that high corporate tax rate reduces corporations income and impact on the investors for more investments. Among  the  recommendations  made on  this  study  were  companies  should thoroughly  consider  the  effect  of tax  imposition  before  embarking  on  any investment  decision  of  their  choice. and  government  should  as  a  matter  of necessity be considered when imposing tax rate applicable to investments, so as not to discourage potential investors from investing.

TABLE OF CONTENT

Title page

Project  assessment

TABLE OF CONTENT

Declaration

Certification                                                                                                                 IV

Dedication                                                                                                                    v 

Acknowledgements                                                                                                      Vl

 Table of contents                                                                                                        vu

Abstract                                                                                                                        

CHAPTER  ONE;

1.0 INTRODUCTION

1.1 Background  of the study

.J .2 Statement  of problem

1.3 Objective  of the study

1.4 Research  questions

1.5 Research  hypotheses

1.6 Significance  of the study

1. 7 Limitations  of the study                                                                                      6

1.8 Scope/delimitation   of the study                                                                         7

CHAPTER TWO    REVIEW OF RELATED LITERATURE

2.0  Introductions                                                                                                8

2.1     Development   of Corporate  taxation  in Nigeria                                              9

2.2       Types of taxation                                                                                             9

2 .3     Essential  features  in corporate  taxation                                                          11

2.4    Condition in granting capital allowance                                                   16 

2.5   .        Types of qualifying capital expenditure and rates                                    16

2.6 ﾿ CHJ\.NGES in company's income tax in NIGERIA, ﾿ 1990 to date ﾿ 16

2.7 ﾿ The concept of investment decision ﾿ 19

2.8 ﾿ Classes o.,.f. investment ﾿ 20

2. 8 .1 ﾿ Kinds of investment ﾿ 21 ﾿

2.9 ﾿ Importance of investment · ﾿ 23

2.10 ﾿ Capital budgeting ﾿ 24

2.11 ﾿ Investment decision and the accountant ﾿ 25

2.12 ﾿ Types of investment decision ﾿ 26

2.13   The effect of corporate taxation on management decision                      28

2.14 Brief history ofNigeria breweries Plc                                                       30

CHAPTER THREE                                                                       •,.

3 .0 ﾿ RESEARCH 1vffiTHOLOGY ﾿ 32

3 .1 ﾿ Research design ﾿ 32

3 .2 ﾿ Source of data ﾿ 33

3.3 ﾿ Population of study ﾿ 34

3 .4 ﾿ Sample and sampling technique ﾿ 36

3.5 Method of data collection                                                                            36

3 .6  Technique for data analysis                                                                         36

3.7 Validity and Reliability of Instrument                                                         37

CHAPTERFOUR

4.1 DA TA PRESENT AT10N;   ANAL YS1S AND fNTERPRET ATION      38 "'                  

4.2 Tabular analysis of questionnaire                                                                38 e                         

 4.3 Test of hypotheses                                                                                        44 

CHAPTER FIVE ﾿

5.1 SUM1\1ARY, CONCLUSION ﾿ Al\TD RECOMMEl\TDATIONS ﾿ 49

5.2 Conclusion ﾿ 50

5 .3 Recommendations ﾿ 51

REFERENCES ﾿

Appendix  I

Appendix  ii