EFFECTS OF DIVIDEND AND TAXES ON FINANCIAL PERFORMANCE OF SELECTED COMMUNICATION FIRM IN NIGERIA
Abstract
ABSTRACT
This study examined the effect of dividend and taxes on the financial performance of
communication firms in Nigeria. Accordingly, in order to gather data from the selected
communication firms in Nigeria, a longitudinal research design is utilized due to the extensive
nature of the study. This study used data of the period covering 2013-2022 from financial reports
of selected five communication firms and were analyzed using panel estimation techniques such
as the pooled OLS, fixed effect model, random effect model and post estimation techniques, such
as the Hausman to validate the rational for choosing either fixed effect model or random effect
model and restricted f-statistic to justify the significance for choosing fixed effect model as the
most suitable and apt model for the study. Findings from the study, based on random effect
estimation indicated that dividend per share exerted positive significant influence on return on
asset of communication firms in Nigeria. The result also showed that there exists negative
insignificant influence of dividend payout ratio on return on asset of communication firms in
Nigeria. Lastly, the result demonstrated positive significant effect of company income tax on
return on asset of communication firms in Nigeria. Therefore, this study recommended that
communication firms should enhance tax planning system, most especially by engaging the
service of tax experts.
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