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2: Pooled OLS Parameter Estimates
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Evidence has shown that no continent can develop without being industrialized and such industrialization must be seen as emanating from the individual Nations that make up the continent. Africa as a continent has continued to lag behind in industrialization mainly because most of the countries that make it up are still not measuring up in the indic...
This paper is a first theoretical presentation of a simple progressive taxation system. The system is based on two adaptations of one easily calculable formula that is based on the societal average income of the previous year. The system contributes to academic discussions as it is a novel approach. It is a progressive tax that does not discriminat...
This paper presents a definition of income that rejects both the BEA and Haig-Simons definitions concerning capital gains. Specifically, capital gains represent future income unless brought to the present by consumption of the gain. We demonstrate that the rollover treatment implied by this definition ends double-taxation, under-taxation, lock-in o...
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... The success of government of any nation depends on its capability to provide for its citizenry the required standards of living. Okezie (2003) disclosed that for a country to sustain the growth in the level of its revenue generation and sustainable capital expenditure, there is the need to encourage the survival of the manufacturing companies operating within the nation's social and economic system. Taxation as a very strong component of fiscal policy has a role to play in the survival of any company operating within a country. ...
Taxation has been a major focus of every government of any nation because it is a major source of revenue that is used to fulfill its obligations to the citizenry. The study examined the effects of companies Income Tax and Education tax on dividend decisions of listed manufacturing companies in Nigeria. The study population is forty one (41) listed manufacturing companies, out of which ten (10) listed companies on the Nigerian Exchange were selected as sample size. Ex post facto research design was adopted using secondary source of data collected from the audited financial statements across the ten (10) companies for the period of ten (10) years from 2012 – 2021. Both descriptive and inferential statistics using regression analysis were used for the analysis with Eview 9 Statistical package. Findings from the study revealed that Education Tax has t-Statistics of 4.2720 with p-value of 0.0171 < 0.05 with negative coefficient of - 0.0531; This result indicates that Education Tax has negative significant effect on Dividend Decision. Companies Income Tax has t Statistics of 3.1844 and p value of 0.0447 < 0.05 with negative coefficient of - 0.0598; this showed that Companies Income Tax has negative significant effect on Dividend Decision. The overall result indicated that Companies Income Tax and Education Tax has F-Statistics of 51.6853 with p-value of 0.0000. Therefore, null hypothesis is rejected hence the study concluded that Companies Income Tax and Education Tax has significant effect on Dividend Decision. Therefore, it recommended that there is need for the management of the companies to examine tax incentives available and utilize it for the benefit of the firm and shareholders and to examine their capital structure composition and utilize the tax advantage available with focus on increasing the shareholders’ wealth and the firm’s growth
... Studies on dividend policy and corporate finance or share price or profitability has been done extensively by researchers likes Omilabu et al. (2018) [34] ; Gbalam and Uzochukwu (2020) [19] ; Pandy and Ashvini (2016) [37] ; Kouser et al. (2015) [25] ; Abdul and Muhibudeen (2015) [1] ; Akani and Sweneme (2016) [7] ; Jacob and Akinseluire (2016) [22] ; Abiola (2014) [2] ; Priya and Nimalathasan (2013). However, there are dearth of studies on the relationship between company income taxes and dividend yield, although few researchers have carried out studies on corporate tax and dividend policy in firm, these are Oloyede et al. (2018) [33] ; Uwuigbe and Olowe (2013) [42] ; Odia and Ogiedu (2013) [32] ; Samuel and Iyanda (2010) [40] but with less focus on dividend yield in money deposit bank. In recent time, the low level of dividend payment by money deposit banks has led to investor attitudinal behavioural changes towards investment decision. ...
... Studies on dividend policy and corporate finance or share price or profitability has been done extensively by researchers likes Omilabu et al. (2018) [34] ; Gbalam and Uzochukwu (2020) [19] ; Pandy and Ashvini (2016) [37] ; Kouser et al. (2015) [25] ; Abdul and Muhibudeen (2015) [1] ; Akani and Sweneme (2016) [7] ; Jacob and Akinseluire (2016) [22] ; Abiola (2014) [2] ; Priya and Nimalathasan (2013). However, there are dearth of studies on the relationship between company income taxes and dividend yield, although few researchers have carried out studies on corporate tax and dividend policy in firm, these are Oloyede et al. (2018) [33] ; Uwuigbe and Olowe (2013) [42] ; Odia and Ogiedu (2013) [32] ; Samuel and Iyanda (2010) [40] but with less focus on dividend yield in money deposit bank. In recent time, the low level of dividend payment by money deposit banks has led to investor attitudinal behavioural changes towards investment decision. ...
... The study recommends that tax rate is a determinant factors of dividend policy. In addition, Oloyede et al. (2018) [33] ; Uwaigbe and Olusegun (2013) [42] studied the effects of company income tax on dividend policy of firms in Nigeria. The study revealed a significant positive relationship between company income tax and the dividend pay-out of firms in Nigeria with insignificant positive impact on dividend per share. ...
Dividend Policy (DP) is the relationship that exist between retained earnings and dividend pay-out, it is one of the financial management decision. Company Income Tax (CIT) is perceived to adversely affect Dividend Yield (DY) in as much as it reduces the profits available for shareholders. Many researches had been conducted on DP but not many considered the effect of CIT on DY in their study. This study considered the probably influence of CIT on DY in Deposit Money Banks (DMB) in Nigeria. The study adopts ex post facto research design with purposive sampling techniques. Descriptive and inferential statistics were used to analyse data at 5% level of significance. The study revealed that CIT has negative effect on DY, while Profitability (PR) has positive effect on DY with (β1=-0.0003246<0 and β2 =0.0005271>0), respectively. CIT negatively influenced DY in DMB in Nigeria and statistically insignificant (Adj R 2 =-0.0018, F =0.87; P=0.4210). This suggests that CIT and PR are not significant factors influencing changes in DY of the selected DMB in Nigeria. The study concluded that CIT has negative insignificant relationship while PR has positive insignificant relationship with DY in quoted DMB in Nigeria. The study recommends that DMB dividend policy should be based on bank's uniqueness which will enhance investment opportunity, this makes CIT a factor to consider in DP. Also, DMB should not neglect tax payment as this would lead to enhanced business environment and better profitability in the long-run.
... There is a dearth of empirical investigation on the nexus between corporate taxation and dividend policy of listed oil and gas companies in Nigeria. Also, some of the previous studies such as Chidoziem & Nestor (2015), Oloyede & Olaoye (2018) used CIT as independent variable, unlike the present study that uses ETR, STR and MTR as proxies for the independent variable. Moreover, the declining dividend payments occasioned by corporate taxation also prompted this research. ...
... The relationship between taxation and dividend policy has been established by many studies such as the study of Hamid et al. (2012) where they maintained that dividend policy can be influenced by the level of corporate taxes, and the shareholders may be at risk of receiving a low return from their investment. Similarly, Oloyede et al. (2018) pointed out that company income tax has an insignificant positive impact on dividend per share, which was concluded in the study that corporate taxation has no clear-cut influence on dividend distribution policy. The findings of Uwuigbe and Olusegun (2010) further contradict the above result. ...
... Impliedly, the low dividend paid by oil and gas firms is a result of the high tax burden on the profit of oil and gas firms. This is consistent with the findings of Oloyede et al. (2018). ...
... This research reviewed a number of studies, both domestic and international. Corporate taxes had no influence on dividend policy in the local studies of (Ibrahim and Saidu, 2015;Oloyede et al., 2018). This finding was supported by Khan et al. (2017)'s analysis of enterprises listed on the Karachi Stock Exchange, now known as the Pakistan Stock Exchange (PSX). ...
... As a result, the null hypotheses in CIT and PAT have been rejected. These findings (Ibrahim and Saidu, 2015;Oloyede et al., 2018;Onwuka, 2019). However, the results of the research in Table 4 show that DBT and IEB had no significant impact on DIV. ...
Dividend policy is a critical component of corporate finance strategy, which, when properly implemented, will allow firms to grow. In general, equity holders or corporate fund providers expect a favourable dividend policy as a motivation and reward for their investment in a company. Despite this golden expectation, there are still certain factors that invariably determine the outcome of firms' dividend policies. This study investigates the influence of corporation tax, profits, and debt in determining business dividend policy. In this paper, we argue that dividend policy is influenced not only by corporate taxation, but also by other factors such as profitability and debt. The panel statistics are derived from the businesses' public financial statements, which cover the years 2016-2020. To evaluate the panel data, the study uses Pairwise Granger Causality Tests, the Hausman check, the collective outcome prototypical, and the coincidental upshot model. Four null premises are examined, and the results reveal that corporate taxes and earnings have an affirmative impact on businesses' surplus payments. Contrarily, debt and interest expenditures have no momentous inspiration on surplus disbursement. The analysis shows that dividend payments and debt are diametrically opposed. The paper suggests equity financing to enhance organizations' business expansion.
... Dividend per share is measured as the total dividend declared and paid by a business, including interim dividends, divided by the number of outstanding ordinary shares. Studies like Ibrahim and Sa'idu (2015), Alias et al. (2016) and Adebayo and Olatunji (2018) used this measure to proxy dividend payment. ...
... Chidoziem and Ndubuisi (2017) for instance use firm size, Leverage as control variables while investigating the effect of taxation on dividend policy of quoted Deposit Money Banks in Nigerian. In addition, Adebayo and Olatunji (2018) used firm size while Hassan, Tanveer, Siddique, and Mudasar (2013) used firm size and profitability as control variables in their studies. Thus, this study used (i) firm size (ii) profitability and (iii) leverage as control variables. ...
Studies on impact of firm attributes on tax aggressiveness have examined the relationship based on the conditional mean of tax aggressiveness. However, it is imperative to look at the interaction from conditional quantiles of tax aggressiveness, because it portrays extent of influence of firm attributes on entire distribution of tax aggressiveness. Thus, this study compares the influence of firm attributes on tax aggressiveness using estimated values from Ordinary Least Squares and quantile regressions. The study samples 29 largest firms in the NSE between 2007 and 2018. Data for the study was sourced from the annual reports of sampled companies and the daily official list of the Nigerian Stock Exchange (NSE). Consistent with the mixed results reported in prior studies, the study finds limited relation between various component of firm attributes and tax aggressiveness at the conditional mean of its distribution. However, using quantile regression, there is a negative relation between total debt ratio and tax aggressiveness for low levels of tax aggressiveness, but no relation for high levels of tax aggressiveness. These results indicate that total debt ratio has stronger influence on extreme low level of tax aggressiveness. The study thus recommends that directors should pay attention to specific impact of each of the firm attributes on tax aggressiveness with a view to match them with appropriate level of tax aggressiveness that generates optimum tax savings.
Purpose: This study examined corporate taxes, transaction cost, and dividend policy in Nigeria quoted firms. The main purpose of this research is to ascertain the relationship between taxes, transaction cost, and the dividend policy of quoted firms in Nigeria. Materials and Methods: The research adopted both statistical and econometric techniques to analyze data obtained from the Nigeria Stock Exchange between 2018 to 2022. The research work employed an ex-post facto research design to obtain, analyze, and interpret the relevant data for hypotheses testing. Simple random sampling and proportionate stratified random sampling was used to select 36 firms quoted in the Nigerian Stock Exchange to ensure all sectors are represented in the sample size. The data was analyzed and presented using E-views 12 statistical software. Using the OLS panel model, the fixed effect OLS model was considered the most appropriate for the empirical modeling and analysis of the equations. Findings: Our findings in this study indicated that dividend payout ratio (DPR) has a negative and insignificant relationship with current income taxes (CIT), deferred taxes (DTL). Company size (SIZE) has positive but not significant relationship with dividend payout while assets growth (GHT) and leverage ratio (LEV) have positive and insignificant relationship with dividend payout (DPR). Also, dividend per share (DPS) has a positive relationship with company income taxes (CIT) but negative relationship with deferred tax liabilities (DTL). Implications to Theory, Practice and Policy: The study was informed by the “Dividend Policy Theory” The debate on whether corporate taxes has impact on dividend payments of companies is unending. The result of the study is consistent with the findings of scholars and researchers with similar interest such as Jensen and Johnson (1995); Miller and Scholes (1982). It is, therefore, recommended that companies should concentrate on other determinants of dividend policy and not corporate taxes and transaction cost, since corporate taxes and transaction cost have no significant effect on dividend policy. Management should design a dividend payout policy that maximizes market value of quoted firms.
ABSTRACT
Taxation has been a major focus of every government of any nation because it is a major source of revenue that is used to fulfill its obligations to the citizenry. The study examined the effects of companies Income Tax and Education tax on dividend decisions of listed manufacturing companies in Nigeria. The study population is forty one (41) listed manufacturing companies, out of which ten (10) listed companies on the Nigerian Exchange were selected as sample size. Ex post facto research design was adopted using secondary source of data collected from the audited financial statements across the ten (10) companies for the period of ten (10) years from 2012 – 2021. Both descriptive and inferential statistics using regression analysis were used for the analysis with E-view 9 Statistical package. Findings from the study revealed that Education Tax has t-Statistics of 4.2720 with p-value of 0.0171 < 0.05 with negative coefficient of -0.0531; This result indicates that Education Tax has negative significant effect on Dividend Decision. Companies Income Tax has t-Statistics of 3.1844 and p-value of 0.0447 < 0.05 with negative coefficient of -0.0598; this showed that Companies Income Tax has negative significant effect on Dividend Decision. The overall result indicated that Companies Income Tax and Education Tax has F-Statistics of 51.6853 with p-value of 0.0000. Therefore, null hypothesis is rejected hence the study concluded that Companies Income Tax and Education Tax has significant effect on Dividend Decision. Therefore, it recommended that there is need for the management of the companies to examine tax incentives available and utilize it for the benefit of the firm and shareholders and to examine their capital structure composition and utilize the tax advantage available with focus on increasing the shareholders’ wealth and the firm’s growth.
The effect of corporate governance on the organization's financial performance has been a crucial issue since the last global financial distress. Many accounting scandals and numerous cases of corporate governance malpractice brought about more attention to corporate governance. The issue is a serious factor in economic growth and financial market steadiness, also enormous body of literature has developed concerning the link between corporate governance and financial performance, but the study finding produced inconsistent results. Therefore, the main purpose of this study is to investigate the moderating effect of the audit committee on the relationship between corporate governance and financial performance.
