TAX RATE AND EARNINGS PER SHARE (EPS) OF LISTED INDUSTRIAL GOODS COMPANIES IN NIGERIA

Abstract

This study examines the impact of tax rates on the earnings per share (EPS) of industrial companies listed on the Nigerian Exchange Group (NGX) from 2019 to 2023. The study population consists of thirteen industrial firms, with secondary data extracted from audited financial statements and annual reports. The methodological framework utilizes panel data techniques, encompassing descriptive statistics, correlational statistics, and inferential testing. Specifically, a panel multiple regression model is employed to evaluate the relationship between the independent variables effective tax rate and marginal tax rate and the dependent variable, EPS. The empirical results reveal that the effective tax rate exerts a significant negative influence on the EPS of the sampled firms. Consequently, the study recommends that Nigerian industrial companies enhance their tax planning frameworks by utilizing statutory tax credits and incentives, optimizing transaction structures, and proactively managing fiscal risks. Implementing these strategies is expected to bolster EPS and improve overall corporate financial performance.