THE IMPLICATION OF TAXATION ON INVESTMENT DECISION MAKING
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 3000
ABSTRACT
The Nigerian corporate income tax system provides investment incentives that vary across asset types. Do corporations investment choices respond to these differences and if so by how much? This research analyzes the effect of corporate income tax on investment decisions of companies listed at the Nigerian stock exchange. While policy makers have made effort to impose more uniformity on corporate tax policies, no empirical study exists to quantify the extent to which corporate income tax have altered the structure of investment decisions. This is rather unfortunate because, as pointed out in Feldstein (1982) capital consists of many types of equipment and structures. The objective of this study is to establish the relationship between corporate taxes and investment decisions of the companies listed at the NSE.
Descriptive Research was used in this study which involved the analysis of quantitative data. The data was the financial statements of the companies listed at the NSE. It was a census study this means that data from the whole population was analyzed. Secondary data was collected from all the companies listed at the NSE from 2012 to 2013. Data analysis was done using the SSPS where the regression analysis, ANOVA and correlation coefficients were generated. T-test was done to prove the relevance of the study.
It was concluded that corporate tax affect investment decisions of the companies. All the corporate tax variables affect the depended variables. The depreciation tax shield has a very small negative value this implies that to a larger extend it reduce the corporate taxes amount and increase the amounts available for investment. The interest tax shield, After Tax cash flow and corporate tax all affect investment. Corporate tax is the highest in reducing the amounts available for investment. The overall effect of these tax incentives is therefore asset specific, depending on the characteristics of the physical asset and, to a lesser extent, the industry in which the asset is placed.
Related Project Materials
N EVALUATION OF EFFECTIVE MANAGEMENT OF TEACHERS’ JOB RELATED STRESS IN SOME SELECTED PRIMARY SCHOOLS
Background to the Study
In developing countries like Nigeria, education aims to provide pupils with new...
THE ANALYSIS OF THE IMPACT OF VALUE ADDED TAX ON REVENUE GENERATION IN NIGERIA (2000–2009)
BACKGROUND OF THE STUDY
Prior to 1993, only very little was known of Value Added Tax (VAT) in Nigeria....
CODE SWITCHING IN NORTHERN NIGERIA: A STUDY OF KANYWOOD FILM INDUSTRY
ABSTRACT
This study is an examination of the language use in the northern Nigeria film industry called Kannywood. This w...
COMPUTERIZED LAND INFORMATION SYSTEM
Abstract
Land is a free gift of nature and a factor of production, land tenure is the name given, parti...
ATTITUDES OF LIBRARIANS TOWARD MARKETING INFORMATION RESOURCES AND SERVICES IN UNIVERSITY LIBRARIES IN NIGERIA
ABSTRACT
The study examined the attitudes of librarians toward marketing information resources and services in university libraries in No...
THE IMPACT OF MICROFINANCE CREDIT ON AGRICULTURAL PRODUCTIVITY IN NIGERIA
EXCERPT FROM THE STUDY
Theory Risk and uncertainty concepts in agriculture are subjects internationally discussed by the...
ANTIMALARIAL SUSCEPTIBILITY AND DRUG RESISTANCE CHARACTERIZATION STUDIES OF PLASMODIUM SPECIES ISOLATES FROM PATIENTS IN NIGERIA
ABSTRACT
About half of Nigerian population experience at least one episode of malaria per year, resulting in high morbidity and mortality...
THE IMPACT OF ENVIRONMENTAL FACTORS ON PROJECT MANAGEMENT
Abstract: This study investigates the impact of environmental factors on project management, aiming to: 1) i...
AN ASSESSMENT OF THE STRATEGIES FOR INTEGRATING INDUSTRY 5.0 CONCEPTS INTO VOCATIONAL CURRICULA
ABSTRACT: Strategies for Integrating Industry 5.0 Concepts into Vocational Curricula examines approaches to incorporate emerging technologies and i...
THE ROLE OF SOCIAL MED IA IN THE POLICE REFORMATION IN NIGERIA: A CASE STUDY OF 2020 ENDSARS PROTEST
1.1 Background of the study
For any country to quell mostly internal insurrection, a...
