CORPORATE TAX AND INVESTMENT OF INDUSTRIAL GOODS FIRMS IN NIGERIA

This study ascertained the effect of corporate tax on investment of listed industrial goods firms in Nigeria, using company income tax and tertiary education tax as the corporate tax. Ex post facto research design was adopted. Data were extracted from the sampled industrial goods firms in Nigeria. The study employed multiple regression analysis to test the hypotheses. The study showed there is negative effects of company income tax indicate that high transactional and income-based tax burdens can reduce liquidity, increase operational costs, and limit the financial flexibility necessary for firms to undertake new investments or expand existing operations. The study revealed that tertiary education taxes have significant positive effect on net investing cash flow. Based on the results, the study recommended that the Ministry of Finance need to consider revising the scheduling and collection mechanisms of company income tax to reduce cash flow constraints on firms, since the significant negative effect on net investing cash flow indicates that current CIT obligations may limit the ability of firms to fund investment projects