Corporate Tax Mix And Financial Performance Of Listed Manufacturing Firms In Nigeria

This study examines the effect of corporate tax mix on the financial performance of listed manufacturing firms in Nigeria. Data were collected from 10 listed manufacturing firms across sectors listed on the Nigerian Stock Exchange for the period of 2014 to 2018 based on firms with complete information for the years under review. The study adopts ex post facto research design and the use of both the Pearson correlation and multiple linear regression in analyzing the data. Findings revealed that tax mix has a positive insignificant effect on the net income of listed manufacturing firms in Nigeria while deferred tax has a negative insignificant effect on the net income of listed firms in Nigeria. Further, findings revealed that company income tax has a positive and significant effect on net income of listed manufacturing firms in Nigeria. The study implication is that the tax incentives available for manufacturing firms is not enough to boost manufacturing activities for business growth, and this compels the firms to defer their tax payment which ends up becoming deferred tax liabilities. It is recommended that government should provide more tax incentives that will reduce corporate income tax payment, encourage tax deferment to boost manufacturing activities to boost net income of the listed manufacturing firms to increase manufacturing activities. Also, manufacturing firms should explore the various tax incentives available to determine effective corporate tax mix.