Corporate Tax on Dividend Policy of Listed Manufacturing Companies in Nigeria
ABSTRACT The study examines the effect of corporate tax on dividend policy in the Nigerian manufacturing sector, focusing on listed companies. It employs secondary data obtained from the financial reports of 34 companies for the period of five years 2019 to 2023. The study used income tax, tertiary education tax and deferred tax as proxies for corporate taxation. These variables were analyzed against dividend payout, using fixed-effects robust standard error regression model to test hypotheses. The study finds no significant relationship between income tax, tertiary education tax and deferred tax with dividend policy with p-value of 0.0580, 0.2840 and 0.2580 respectively. These findings provide valuable insights for policymakers, tax authorities, and investors, highlighting the complexity of taxation impacts on corporate financial decisions. Furthermore, the research contributes to theoretical discussions by expanding understanding in a developing economy context, specifically Nigeria. Recommendations are proffered to improve corporate financial management, tax compliance, and dividend structuring for listed manufacturing companies.
Keywords: Keywords: Corporate Tax, Iccome Tax, Dividend Payout and Manufacturing Companies
Citation: Muhammad, U.H., Ibrahim, U.S., Abubakar, A., Barma, M., & Lawan, S. (2025). Corporate Tax on Dividend Policy of Listed Manufacturing Companies in Nigeria. International Journal of Innovative Research in Accounting and Sustainability, 10(2), 1-14.