TAX INCENTIVES AND FINANCIAL PERFORMANCE OF LISTED AGRICULTURAL FIRMS IN NIGERIA

Abstract

This study investigated tax incentives and financial performance of listed agricultural firms in Nigeria. The specific objectives were to: Investigate the relationship between capital allowance and return on equity of listed agricultural firms in Nigeria; ascertain the relationship between capital allowance and net profit margin of listed agricultural firms in Nigeria.  This study adopted the Ex Post Facto Research design. The target population of this study are all the five (5), listed agricultural firms in Nigeria. Their published audited financial statements for the period of ten (10), years (2014-2023), was used for analyses. This research used census approach since all the five (5), listed agricultural firms in Nigeria are involved. The period covered in this study was eight years (2014-2023). This study adopted descriptive statistics, Correlation, Unit Root Test and Multiple Regression method of data analysis. The finding revealed that the effect of capital allowance on net profit margin of listed agricultural firms in Nigeria is not significant; The effect of capital allowance on return on equity of listed agricultural firms in Nigeria is not significant. The study concluded concludes that not all the tested variables have a positive and significant effect on financial performance of listed agricultural firms in Nigeria. Hence, we accepted three null hypotheses and rejected one. Therefore, the study suggested amongst other that the authorities concerned with granting tax incentives should make it easier and seamless for companies to access tax incentives in record time. In order to boost the impact of tax incentives, the management of Agricultural companies in Nigeria should create awareness programs in terms of operation, application and benefits of capital allowance.