Retained Earnings and Company Income Tax for Consumer Goods Firms in Nigeria That Are Listed

Author: Abu Michael Okoh, Adeadebayo Abdulkabir Shuaib, Adeniyi Sarafadeen Diran, Murtadho M. Alao

Abstract

This research looked at how retained earnings from listed consumer goods businesses in Corporation income tax has an impact on Nigeria. The study employed an ex-post-facto research design. Secondary sources provided the information. The representative data for the independent variable (corporate income tax) and the dependent variable (retained earnings) came from the audited financial reports of each of the selected listed consumer goods companies. The study's sample size was determined using the census sampling technique. OLS regression was used to examine the data, and Pearson correlation was used to estimate the mode. Numerous robustness tests, such as tests for data normality, unit root, multicollinearity, and heteroskedasticity, were also performed on the findings. The study's findings demonstrated that the listed consumer goods companies' retained profits were greatly impacted by corporation income tax. In order to encourage businesses to continue functioning, the report suggested that the government take into account measures meant to lessen the tax burden on consumer products firms and, if required, provide tax exemptions.