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The Impact of Corporate Taxation on Financing Decisions of Listed Conglomerates in Nigeria
Current Issue
Volume 5, 2018
Issue 2 (June)
Pages: 32-39   |   Vol. 5, No. 2, June 2018   |   Follow on         
Paper in PDF Downloads: 35   Since May 29, 2018 Views: 1119   Since May 29, 2018
Authors
[1]
Mohammed Ibrahim, Department of Accounting, Gombe State University, Gombe, Nigeria.
[2]
Sagir Lawal, Department of Accounting, Nigeria Police Academy, Wudil, Kano State, Nigeria.
[3]
Adamu Danlami Ahmed, Department of Accounting, Gombe State University, Gombe, Nigeria.
Abstract
The study assessed the impact of corporate taxation on financing decisions of listed conglomerates in Nigerian over the periods 2006 to 2015. Data for the study was collected from the annual reports and accounts of the companies. A panel data methodology was employed specifically using Pooled OLS, Fixed Effect and Random Effect Regression methods in analyzing the data. The paper demonstrated that corporate taxation, profitability and age are positively related to financing decisions of listed conglomerates in Nigerian, while tangibility and size are negatively related to financing decision of listed conglomerates in Nigerian. The study recommends that there is need for government to reduce the level of company income tax further to encourage firms to plough back their profits into profitable investment opportunities. The prevailing interest rate on debt is high and it discourages firms from seeking debt financing as such government should pursue policy measures that will lower the interest rates.
Keywords
Corporate Taxation, Financing Decision, Age, Size
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