Paper Contents
Abstract
Performance of Organizations around the globe have been having affected by many factors for which tax and others take prominence. Hence, this study evaluates the impact of Corporate Tax and Firm Characteristics on the Financial Performance of selected Insurance Companies in Nigeria. Panel design was employed for this study. Secondary data used were gathered basically from published annual report and accounts of listed Insurance companies in Nigeria for over 10year period of 2011 2021. Explanatory variables include; Corporate Tax (CT), Firm Size (FS), Firm Age (AGE) and Leverage (LEV) while Return on Asset (ROA) formed the dependent variable. Descriptive statistics in addition to Pearson Product Moment Correlation (PPMC) and Pooled Ordinary Least Square (OLS) methods were used to analyze the data collected over the study period. Findings from the study among others indicate that there exist a positive significant effect of Corporate Tax (CT), Firm Size (FS) and Firm AGE (AGE) on Return on Asset ( 0.0277012; 0.0093884; 0.0508625, > 0.0019; 0.002; 0.0013 ) while leverage (LEV) had negative effect on Return on Asset ( -0.02564, > 0.020). On the basis of these findings, the study concludes that Insurance Companies in Nigeria should endeavour to consistently meet their tax liability as they fall due. Also the management of Insurance companies in Nigeria should try to maintain a reasonable asset to liability ratio so that its negative effect on profitability could be put under check.
Copyright
Copyright © 2023 Tunde Olutokunboh OBAFEMI. This is an open access article distributed under the Creative Commons Attribution License.
