Abstract
This study determined the effect of Taxes on Net Investment of Listed Communication Firms in Nigeria for a period of ten years spanning from 2010 and 2019. Eight Communications firms were purposively sampled from a population of eleven listed Communication firms in Nigeria. The proxies for Taxes include Information Communication Tax, Education Tax and Company Income Tax, while Net Investment served as the dependent variable. Pearson Correlation Coefficient and Panel Least Square (PLS) Regression analysis via E-Views 10.0 statistical software were used to test the hypotheses of the study. The result of this study showed that Information Communication Tax, Education Tax and Company Income Tax have a significant negative effect on Net Investment at 5% level of significance respectively. This study therefore recommends inter alia that Federal Government of Nigeria should reduce the amount of tax liability at the end of the year thus making funds available for further investment.
Highlights
Over the past decades, the relationship between corporate investment and taxation has become increasingly central to economic and tax policy and a focus of empirical research
In order to fill the observed gaps in literature, this study considered tax as against prior studies that considered only company tax) in order to close the variable gap, while the sectoral gap was resolved by concentrating on Communication Sector as majority of the study on this theme focused on deposit money banks
This study examined the effect of taxes on net investment of communication firms listed on the floor of the Nigerian Stock Exchange from 2010-2019 periods
Summary
The relationship between corporate investment and taxation has become increasingly central to economic and tax policy and a focus of empirical research. As a result of this competition, most industrialised countries have cut corporate tax rates, in some cases by a large margin. These reductions are generally financed by broadening of the tax base, with limitations in depreciation allowances and offsetting of tax losses (Amahalu et al, 2019). The development of telecommunications in Nigeria began in 1886 when a cable connection was established between Lagos and the colonial office in London. The main transmission medium during the pre-independence era was unshielded twisted pair. This evolved later from rural carrier systems on high gauge lines to line carrier systems of twelvechannel capacity. The question is what is the concern of tax in investment decision of companies? It is well understood that taxation can distort investment plans by reducing the after-tax returns to new investment
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Academic Research in Accounting, Finance and Management Sciences
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
