THE INFLUENCE OF TERTIARY EDUCATION AND DEFERRED TAX ON DIVIDEND POLICY OF LISTED MANUFACTURING COMPANIES
Umar Salim Ibrahim and Aliyu A. Almustapha
Volume 5 Issue 4
Abstract
The study evaluate the effect of corporate tax on dividend policy of manufacturing companies in Nigeria. The study used secondry data obtained from the financial reports of the manufacturing 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 tertiary education tax and deferred tax with dividend policy 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: Corporate Tax, Dividend Payout and Manufacturing Companies
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