EFFECT OF TAXATION ON CORPORATE INVESTMENT OF LISTED CONSUMER GOODS FIRMS IN NIGERIA

This study examines the effect of taxation on corporate investment of listed consumer goods firms in Nigeria. The research design for the study was expo-facto. The population of the study was the 21 listed consumer goods firms in Nigeria. The sample size the study chosen was 17 listed because they are active, while the rest are inactive. The method of data collection was secondary data. Multiple regression was used for data analysis. The findings of the study revealed that effective tax rate has a positive and insignificant influence on the corporate investment of listed consumer goods firms in Nigeria. This signifies that cash effective tax rate has no significantly influencing on corporate investment of listed consumer goods firms in Nigeria. The study also revealed that cash effective tax rate also depicts a positive and insignificant influence on the corporate investment of listed consumer goods firms in Nigeria. This implies that cash effective rate has an insignificant influence on corporate investment of listed consumer goods firms in Nigeria. However, the study revealed that tax savings has a positive, statistical and significantly influence on corporate investment decision of listed consumer goods firms in Nigeria. The study concludes that both effective tax rate and cash effective tax rate have no influence corporate investment decision of listed consumer goods firms in Nigeria negatively. While, tax savings has an influence on the corporate investment of listed consumer goods firms in Nigeria positively. The study recommends that the listed consumer goods firms in Nigeria should focus on implementing strategies to maximize their effective tax rate and cash effective tax rate, as these have a detrimental effect on their corporate investment.