International Journal of Social Sciences and Management Review

EDUCATION TAX EFFECT ON FIRMS VALUE OF CONSUMER PRODUCTS INDUSTRIES IN NIGERIA

Authors: Coefficientsaani, Thomas Maduabuchi, Asogwa, Joseph Okechukwu & Akparhuere, Godwin Oghenekohwo, Ph.D

ABSTRACT

The main aim of this study was to determine the effect of the education tax on firms’ value in the consumer products industry in Nigeria. Education tax represents the independent variable while return on investment, return on equity, and earnings per share concentration on firms’ value of consumer products companies form the dependent variables. A random sampling technique was used in selecting a sample of five (5) out of nineteen (19) consumer product companies for the study. The study adopted the ex-facto research design for the extraction of data from secondary sources; such as audited corporate annual reports of beverage industries and the Nigeria Stock Exchange fact book. Data collected were analyzed using descriptive statistics, correlation, and regression analysis. Hypotheses testing was done with linear regression analysis techniques using SPSS analytical software package version 20.0. The results indicated that Education Tax has an insignificant and positive effect on return on investment of sampled consumer products industry in Nigeria while Education Tax has a significant but positive effect on return on equity of sampled consumer products industry in Nigeria; Education tax has a significant and positive effect on earnings per share of sampled consumer products industry in Nigeria. The policy implication is that Education Tax is a good predictor of financial performance. The study recommended that consumer product industries, must strive to improve their generated sales revenue and another source like investing in profitable tangible and nontangible assets; that government should provide an enabling environment for companies to increase their return on investment; and that firms of consumer products industry should be sure of a positive return on investment otherwise other opportunities with return should be considered. Government should also reduce the education tax rate to encourage return on equity of the consumer products industry in Nigeria and consumer product firms should strive high to increase their profit and minimize their cost. The consumer products industry should provide good policies and strategies that will enhance revenue to encourage earnings per share since is one metric to measure the financial health of firms.

Keywords: Firms’ value, Earnings per Share, Education Tax, Return on Equity, Return on Investment, Financial Performance, Consumer Products Firm, Nigeria,

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