EFFECTS OF TAXATION ON FINANCIAL PERFORMANCE OF INDUSTRiAL GOODS SECTOR IN NIGERIA

Abstract

This study examined the Effect of Taxation on Financial Performance of Industrial Goods Sector in Nigeria. The study specifically analyzed the effect of Taxation on Industrial Goods Sectors Performance measured in terms of company income tax, value added tax, education tax and return on equity. This study sampled 4 companies from Industrial Goods Sector as classified on the Nigerian Stock Exchange. Secondary data were collected across the selected Industrial Goods Sector over a period of 10 years spanning from 2009 to 2018. Data collected in the study were analyzed by multiple linear regression techniques. Result revealed that the overall R value of 0.292 shows a low (29.2%) positive relationship between the return on equity and the independent variables jointly. The R square value of 0.085 (8.5%) depicts the value of variation in return on equity than can be attributed to the three independent variables jointly. The F-statistics of 0.992 and the corresponding p-value of 0.409 depict that jointly, there is no statistically significant relationship between return on equity and independent variables jointly. Therefore, the overall contribution of the independent variables to the model show that all the variables do not contribute significantly to the model as their p-values were more than 0.05 (5%). Therefore the regression equation extracted from the analysis is thus given as: ROE= 17.008 -2.170 (CIT) –+0.717 (ET) -0.355 (VAT) + et