Statutory Payments and Accruals on Financial Performance of Listed Non-Financial Firms in Nigeria

Abstract

The unresolved controversy regarding the effect of statutory payments and accruals on financial performance continues to challenge the success of listed non-financial firms in Nigeria. Despite the critical importance of these factors, there exists a lack of clarity and understanding surrounding their impact on organisational outcomes. Given the foregoing, this study examined the effect of statutory payments and total accruals on financial performance of listed non-financial firms in Nigeria. To achieve these objectives, longitudinal research design was employed and the study used twenty (20) listed non-financial firms that had consistently published their audited annual financial reports from 2008 to 2022, and analyzed the data using panel multiple regression technique with the help of E-view 13 statistical tools. The result of the study revealed that financial statutory payment has a significant effect on financial performance of listed non-financial firms in Nigeria. Conversely, total accrual has insignificant effect on financial performance of listed non-financial firms in Nigeria. Thus, this study concluded that statutory payments serve as a veritable tool or determinant of financial performance. Thus, the study recommended that non-financial firms are to prioritize compliance with financial statutory payments, as demonstrated by the significant influence of such payments on financial performance. This entails adhering to regulatory requirements, tax obligations, and other statutory payments to maintain transparency and credibility with stakeholders.