Effect of High Corporate Tax Rate on the Liquidity of Corporate Organizations in Nigeria-A Study of some Selected Corporate Organizations.

Dr. Ezugwu, C.I
Dr. Ezugwu, C.I * §
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Ezugwu
Ezugwu
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daniel akubo
daniel akubo
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§ KOGI STATE UNIVERSITY, ANYIGBA

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Effect of High Corporate Tax Rate on the Liquidity of Corporate Organizations in Nigeria-A Study of some Selected Corporate Organizations.

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Abstract

The study was carried-out to analyse the effect of high corporate tax rate on the liquidity of corporate organizations in Nigeria. The related literatures were reviewed. The population of study comprises the selected corporate organizations while the sample size of the study is fourty one (41). Taro Yamane sampling technique was adopted because it ensures a satisfactory degree of representativeness and un-biasness. A number of statistical tools including tables and analysis of variance (ANOVA) were used to analysed the data and test the hypothesis formulated. The study revealed that, the burden of high corporate tax falls on the corporate organisations as it affects their liquidity, but the incidence of high corporate tax rate falls on the customers and suppliers through forward and backward shifting of pricesall things being equal. It is therefore, recommended that, the Nigeria corporate tax rate of 30% should be reduce below OECD average corporate tax rate of 25.32% to avert the negative economic effects of high corporate tax rate on the long-run and also the government should strengthen the Bank of Industry to close the funding gap in the corporate organisations.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Dr. Ezugwu, C.I, Ezugwu, daniel akubo. 2014. "Effect of High Corporate Tax Rate on the Liquidity of Corporate Organizations in Nigeria-A Study of some Selected Corporate Organizations.". Global Journal of Management and Business Research - D: Accounting & Auditing GJMBR-D Volume 14 (GJMBR Volume 14 Issue D3).

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords
CorporateEffecthighliquidity and organizationsratetax
Classification
GJMBR-D Classification JEL Code: H20
H29
  • Submission ReceivedDecember 10, 2013
  • Peer Review Double Blind
    Handling Editor
  • Accepted January 4, 2014
  • Published January 15, 2014
Version of record

v1.2

Issue date
August 31, 2014

Language
English
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Effect of High Corporate Tax Rate on the Liquidity of Corporate Organizations in Nigeria-A Study of some Selected Corporate Organizations.

Dr. C.I
Dr. C.I KOGI STATE UNIVERSITY, ANYIGBA
Ezugwu
Ezugwu
daniel akubo
daniel akubo
  • Submission ReceivedDecember 10, 2013
  • Peer Review Double Blind
    Handling Editor
  • Accepted January 4, 2014
  • Published January 15, 2014