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VOL. 8, ISSUE 4 (2026)
Tax reforms, capital structure and shareholders’ assets among listed consumer goods firms in Nigeria
Authors
Dr. S Abdurrazaq
Abstract
The study examined effect of tax reforms and capital structure on
shareholders’ assets among listed consumer goods firms in Nigeria. Ex-post
facto research design was adopted with a population size of 19 listed consumer
goods firms in Nigeria. The sample size was 15 firms purposively selected for a
six-year period (2020 – 2025). 90 observations were made from the firms’ annual
reports. The descriptive statistics adopted were mean and standard deviation
while the inferential statistics used was Ordinary Least Square (OLS)
regression analysis, due to presence of panel effect in the Lagrangian
Multiplier (LM) test between OLS and Random Effects Model (REM), denoted by
probability value: 0.0000. The findings revealed that Effective Tax Rate (ETR)
and Short-Term Debt (STD) each have negative and significant effect on
shareholders’ assets at 0.01 and 0.1 respectively among listed consumer goods
firms in Nigeria. Long Term Debt (LTD), Debt-Equity Ratio (DER), and Retained
Earnings per Share (REPS) each have positive effect on shareholders’ assets,
only REPS’ positive effect is significant at 0.1 level of significance, among
listed consumer goods firms in Nigeria. One of the recommendations holds that
the Federal Government of Nigeria is urged to review law on company income tax
down to 20% for large companies while small companies pay minimum tax of 0.5%
on their annual turnover, among other items of tax that culminate ETR at 15%
base and 25% ceiling of ETR is also suggested in the consumer goods sector. The
managements of companies in the sector are also enjoined to ensure more long-term
debt capital to provide more withholding tax from interest as tax relief and
sustain retained earnings ratio which in turn can be used to offset short term
obligations and for reinvestment at no capital market transaction cost.
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Pages:19-27
How to cite this article:
Dr. S Abdurrazaq "Tax reforms, capital structure and shareholders’ assets among listed consumer goods firms in Nigeria". International Journal of Finance and Commerce, Vol 8, Issue 4, 2026, Pages 19-27
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