IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-05382795.html
   My bibliography  Save this paper

The Impact of Tax Rates on the Profitability of Listed Oil and Gas Multinational Firms in Nigeria

Author

Listed:
  • Iheanyichukwu Emmanuel Nkwa

    (Department of Business Administration, Faculty of Management Science, Federal University Otuoke Bayelsa, Nigeria.)

  • Taofiq Olasunkanmi Yusuff

    (Department of Marketing, Faculty of Management Science, Yaba College of Technology Yaba, Nigeria.)

  • Oluwatosin Emmanuel Oladetan

    (Department of Management, Universidad Católica San Antonio de Murcia (UCAM), Spain.)

  • Benjamin Onolememhen Asotie

    (Department of Medicine, Ambrose Alli University, Ekpoma, Nigeria.)

  • Jide Sunday Oyewole

    (Department of Accounting, Faculty of Education, Ekiti State University, Nigeria.)

  • Grace Ogechi Ejike

    (Department of Accountancy, School of Financial Studies, Federal Polytechnic Bida, Nigeria.)

Abstract

This research work examines the tax rate and profitability of multinational firms in Nigeria using the Multinational Oil Firms in Nigeria. The study's population comprises the top five multinational oil and gas firms listed in Nigeria, namely Shell, Chevron, ExxonMobil, AGIP, and Total. A census sampling method was adopted for this study. The data used are gathered from the published annual statement of accounts of the companies for a decade, covering the period from 2011 to 2020. The Autoregressive Distributed Lag (ARDL) model was utilized as the technique for data analysis. Based on the results of the study: (1) H01 Marginal Tax Rate (MTR) on the short run has a negative and non-significant effect on Return on assets (ROA) with a p-value of 0.3940, (2) H02 Effective Tax Rate (ETR) on the short run has a positive and non-significant effect on Return on assets (ROA) with a p-value of 0.5976, (3) On the long run according to the result of the study; Effective Tax rate (ETR) has a negative and significant effect. Therefore, the study recommends that the relevant tax authorities should formulate tax reforms that would result in low taxation return rates, especially the statutory tax rate, as it is observed that there are tax incidence rates on the profitability of multinational firms. Based on these findings, the study recommends that policymakers prioritize stable and predictable tax regimes to foster a conducive environment for investment and sustainable corporate growth in Nigeria.

Suggested Citation

  • Iheanyichukwu Emmanuel Nkwa & Taofiq Olasunkanmi Yusuff & Oluwatosin Emmanuel Oladetan & Benjamin Onolememhen Asotie & Jide Sunday Oyewole & Grace Ogechi Ejike, 2025. "The Impact of Tax Rates on the Profitability of Listed Oil and Gas Multinational Firms in Nigeria," Post-Print hal-05382795, HAL.
    • Handle: RePEc:hal:journl:hal-05382795
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-05382795. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.