TAX INCENTIVES AND FINANCIAL PERFORMANCE OF LISTED CONSUMER GOODS MANUFACTURING COMPANIES IN NIGERIA.

Abstract

The study investigated tax incentives and financial performance of listed consumer goods

manufacturing companies in Nigeria. The research adopted ex-post facto design. The population

for this study was twenty-one (21) listed consumer goods companies in Nigerian Stock Exchange

and a sample size of twenty listed consumer goods companies. The instrument of the study was

secondary data obtained from the company’s published financial report or statements within the

period of eleven (11) years, ranging from 2009-2019. The formulated research questions were

analyzed with descriptive statistics. The hypotheses were tested at a significance level of .05

using the multiple regression analysis with the aid of E-view (10). The results of the findings

were that there is positive and significant relationship between investment allowance and return

on assets of listed consumer goods manufacturing companies in Nigeria. On the other hand,

there is positive and significant relationship between annual allowance and return on assets of

listed consumer goods manufacturing companies in Nigeria and there is significant influence of

share capital in the relationship between tax incentives and financial performance of listed

consumer goods manufacturing companies in Nigeria. This study recommends among others that;

To continually maintain high return on assets of consumer goods manufacturing industry and

foster economic development. Captains of the industries and government should encourage

investment by formulating and enacting laws that increase the rate of investment allowance from

15% to 20% on plant and machineries used in manufacturing business. No doubt manufacturing

companies are benefiting financially from annual allowances. Also, the tax authority should

consider proportionately increase of annual allowances if the

period for a year of assessment

happens to be a period of more than one year. This will attract

more investors thereby improving

the economic growth of the country.