Work

Corporate Tax and Investment of Industrial Goods Firms in Nigeria

Year: 2026

Type: article

Abstract: This study ascertained the effect of corporate tax on investment of listed industrial goods firms in Nigeria, using company income tax and tertiary education tax as the corporate tax. Ex post facto research design was adopted. Data were extracted from the sampled industrial goods firms in Nigeria. The study employed multiple regression analysis to test the hypotheses. The study showed there is negative effects of company income tax indicate that high transactional and income-based tax burdens can reduce liquidity, increase operational costs, and limit the financial flexibility necessary for firms to undertake new investments or expand existing operations. The study revealed that tertiary education taxes have significant positive effect on net investing cash flow. Based on the results, the study recommended that the Ministry of Finance need to consider revising the scheduling and collection mechanisms of company income tax to reduce cash flow constraints on firms, since the significant negative effect on net investing cash flow indicates that current CIT obligations may limit the ability of firms to fund investment projects

Source: Zenodo (CERN European Organization for Nuclear Research)

DOI: 10.5281/zenodo.19609196

Authors: Ezejiofor, Raymond A, Ogbonnia, Edith Chikaodi

Institutions: Nnamdi Azikiwe University, Paul University Awka

Language: English

Topic: Corporate Taxation and Avoidance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: green

OpenAlex ID: W7154630143

FWCI:

Cites:

Cited by:

Related to: