Samuel, Hope Udoma and Akpan, Dorathy Christopher and Nsentip, Ese Bassey and Ukpe, Essien Amos (2023) Tax Shield and Firms Value of Quoted Manufacturing Companies in Nigeria. International Journal of Business and Management Review, 11 (9). pp. 16-34. ISSN 2052-6393(Print), 2052-6407(Online)
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Abstract
This study investigated the effect of tax shield on firms’ value of selected manufacturing companies in Nigeria from 2012 to 2021. The dependent variable of this study was firm value which was proxied by Tobins Q, while the independent variables were debt tax shield, depreciation tax shield and charitable donation tax shield. The research design adopted for the study was ex post facto, secondary data were employed, three hypotheses were tested and purposive sampling technique was used. The data for the study were analyzed using ordinary least square regression technique and the statistical tool package used was SPSS Version 20. From the result of the analysis, it was found out that debt tax shield, depreciation tax shield and charitable donation tax shield have significant effect on market value of selected manufacturing firms in Nigeria. Hence, it was concluded that tax shield could be used to optimize the value of manufacturing firms’ in Nigeria. Based on the outcome of this study, it was recommended among others that management of manufacturing firms should consider increasing debt financing, invest more in non-current asset, take advantage of charitable donation as means to enhance corporate image and maintain a proper mix of tax shield in the firm thus bringing overall benefit to shareholders and prospective investors.
| Item Type: | Article |
|---|---|
| Subjects: | H Social Sciences > H Social Sciences (General) |
| Depositing User: | Professor Mark T. Owen |
| Date Deposited: | 21 Sep 2023 17:45 |
| Last Modified: | 21 Sep 2023 17:45 |
| URI: | https://tudr.org/id/eprint/2222 |
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