IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 9 NO. 11 2023

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Effect of Company Income Tax on Financing Decisions

Rabson Iniobong Cletus., Rufus, Emmanuel-Ubong Ita., Bassey Gift Eja. Loveth Okpunor

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Abstract

The study examined the effect of company income tax on financing decisions. A study of Guinness, Nigeria. The specific objectives were: to ascertain the extent to which company income tax influence equity financing decision of Guinness, Nigeria, determine the extent to which company income tax influence debt financing decision of Guinness, Nigeria, and to investigate the extent to which company income tax influence retained earnings financing decision of Guinness, Nigeria. Ex-post facto design was adopted in the study. Data for this study were gathered from secondary sources of data using annual report of the company of various years. Simple regssion statistical tool was employed in the study. The major findings of this study include: company income tax significantly influence equity financing decision of Guinness, company income tax significantly influence debt financing decision of Guinness, and company income tax significantly influence retained earning financing decision of Guinness, Nigeria. The study recommended that government should make it possible for companies to evade tax and penalize any registered company that evades tax. Finally, government should harness the potentials of taxation and promote tax system in order to increase the prosperity of the Nigerian economy.

keywords:

Company income tax, equity financing decision, debt financing decision, retained earnings financing decision

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References:

Adegbite, C., Fakate, U. (2021). Government Revenue and economic growth. Journal
of Policy Modeling, 24(2), 679-692.


Adereti, M. (2011). The power to tax: analytical foundations of fiscal constitution.
University Press.

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