This study evaluated the effect of corporate tax planning on the financial performance of Quoted food and beverages firms in Nigeria, with a population comprising 15 quoted food and beverages firms on the Nigerian Stock Exchange for ten years between 2008-2018, forming the sample using total enumeration sampling method. The study employed ex-post facto research design. The validity and reliability of the instruments were based on the statutory audit of the financial statement and approval for use by the regulator. The data were analysed using descriptive and influential statistics. From the analysis done, it has shown that corporate tax planning variables of effective tax rate, capital intensity, thin capitalization do not have a significant positive effect on financial performance of a quoted food and beverages firm in Nigeria Adjusted R2= 0.069: F-statistic (input)=8.81, p= 0.0383<0.05). The analysis revealed that all proxies of corporate tax planning practices do not significant effect on return on capital employed of quoted food, and beverages firm in Nigeria (Adjusted R2= 0.038: F-statistic 1.09, p= 0.03537>0.05). All proxies of corporate tax planning practices have a significant positive effect on return on assets of the industry (Adjusted R2= 0.1095: F-statistic 37.76, p= 0.000<0.05). All proxies of corporate tax planning practices have no significant effect on return on equity of the industry (Adjusted R2= 0.0068: F-statistic 0.66, p= 0.957>0.05). Similarly, the result shows all proxies of corporate tax planning practices do not have a significant positive effect on earnings per share of the food and beverages industry (Adjusted R2= 0.068: F-statistic 1.34, p= 0.2639>0.05). Thus, the research concluded that corporate tax planning proxies of effective tax rate, capital intensity and thin capitalisation, has a significant positive effect on the performance of quoted food and beverages firms in Nigeria.
| Published in | Journal of Finance and Accounting (Volume 8, Issue 6) |
| DOI | 10.11648/j.jfa.20200806.13 |
| Page(s) | 266-275 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2020. Published by Science Publishing Group |
Earnings Per Share, Effective Tax Rate, Return on Capital Employed, Return on Asset, Return on Equity, Thin Capitalisation, Profitability
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APA Style
Oyeshile Oladapo Kayode, Adegbie Festus Folajinmi. (2020). Corporate Tax Planning and Financial Performance of Quoted Food and Beverages Firms in Nigeria. Journal of Finance and Accounting, 8(6), 266-275. https://doi.org/10.11648/j.jfa.20200806.13
ACS Style
Oyeshile Oladapo Kayode; Adegbie Festus Folajinmi. Corporate Tax Planning and Financial Performance of Quoted Food and Beverages Firms in Nigeria. J. Finance Account. 2020, 8(6), 266-275. doi: 10.11648/j.jfa.20200806.13
AMA Style
Oyeshile Oladapo Kayode, Adegbie Festus Folajinmi. Corporate Tax Planning and Financial Performance of Quoted Food and Beverages Firms in Nigeria. J Finance Account. 2020;8(6):266-275. doi: 10.11648/j.jfa.20200806.13
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Download@article{10.11648/j.jfa.20200806.13,
author = {Oyeshile Oladapo Kayode and Adegbie Festus Folajinmi},
title = {Corporate Tax Planning and Financial Performance of Quoted Food and Beverages Firms in Nigeria},
journal = {Journal of Finance and Accounting},
volume = {8},
number = {6},
pages = {266-275},
doi = {10.11648/j.jfa.20200806.13},
url = {https://doi.org/10.11648/j.jfa.20200806.13},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20200806.13},
abstract = {This study evaluated the effect of corporate tax planning on the financial performance of Quoted food and beverages firms in Nigeria, with a population comprising 15 quoted food and beverages firms on the Nigerian Stock Exchange for ten years between 2008-2018, forming the sample using total enumeration sampling method. The study employed ex-post facto research design. The validity and reliability of the instruments were based on the statutory audit of the financial statement and approval for use by the regulator. The data were analysed using descriptive and influential statistics. From the analysis done, it has shown that corporate tax planning variables of effective tax rate, capital intensity, thin capitalization do not have a significant positive effect on financial performance of a quoted food and beverages firm in Nigeria Adjusted R2= 0.069: F-statistic (input)=8.81, p= 0.0383R2= 0.038: F-statistic 1.09, p= 0.03537>0.05). All proxies of corporate tax planning practices have a significant positive effect on return on assets of the industry (Adjusted R2= 0.1095: F-statistic 37.76, p= 0.000R2= 0.0068: F-statistic 0.66, p= 0.957>0.05). Similarly, the result shows all proxies of corporate tax planning practices do not have a significant positive effect on earnings per share of the food and beverages industry (Adjusted R2= 0.068: F-statistic 1.34, p= 0.2639>0.05). Thus, the research concluded that corporate tax planning proxies of effective tax rate, capital intensity and thin capitalisation, has a significant positive effect on the performance of quoted food and beverages firms in Nigeria.},
year = {2020}
}
TY - JOUR T1 - Corporate Tax Planning and Financial Performance of Quoted Food and Beverages Firms in Nigeria AU - Oyeshile Oladapo Kayode AU - Adegbie Festus Folajinmi Y1 - 2020/11/23 PY - 2020 N1 - https://doi.org/10.11648/j.jfa.20200806.13 DO - 10.11648/j.jfa.20200806.13 T2 - Journal of Finance and Accounting JF - Journal of Finance and Accounting JO - Journal of Finance and Accounting SP - 266 EP - 275 PB - Science Publishing Group SN - 2330-7323 UR - https://doi.org/10.11648/j.jfa.20200806.13 AB - This study evaluated the effect of corporate tax planning on the financial performance of Quoted food and beverages firms in Nigeria, with a population comprising 15 quoted food and beverages firms on the Nigerian Stock Exchange for ten years between 2008-2018, forming the sample using total enumeration sampling method. The study employed ex-post facto research design. The validity and reliability of the instruments were based on the statutory audit of the financial statement and approval for use by the regulator. The data were analysed using descriptive and influential statistics. From the analysis done, it has shown that corporate tax planning variables of effective tax rate, capital intensity, thin capitalization do not have a significant positive effect on financial performance of a quoted food and beverages firm in Nigeria Adjusted R2= 0.069: F-statistic (input)=8.81, p= 0.0383R2= 0.038: F-statistic 1.09, p= 0.03537>0.05). All proxies of corporate tax planning practices have a significant positive effect on return on assets of the industry (Adjusted R2= 0.1095: F-statistic 37.76, p= 0.000R2= 0.0068: F-statistic 0.66, p= 0.957>0.05). Similarly, the result shows all proxies of corporate tax planning practices do not have a significant positive effect on earnings per share of the food and beverages industry (Adjusted R2= 0.068: F-statistic 1.34, p= 0.2639>0.05). Thus, the research concluded that corporate tax planning proxies of effective tax rate, capital intensity and thin capitalisation, has a significant positive effect on the performance of quoted food and beverages firms in Nigeria. VL - 8 IS - 6 ER -
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