Effect of Corporate Tax on Dividend Policy of Listed Deposit Money Banks in Nigeria

Vollständiger Abstract

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The study examines the impact of corporate tax on dividend policy of listed deposit money banks. The study adopted ex-post facto research design. Variables used in this study include; Company Income Tax (CIT), Education Tax (ET) and Information Technology Tax (ITT). Dividend Per Share (DPS) is the dependent variable. Data was sourced from the annual reports of ten sampled listed Deposit Money Banks for a period of ten years from 2014-2023. Descriptive statistical tools such mean and standard deviation was used to summarize the data generated for the study for easy understanding. Regression technique was further used in the analysis and test of hypotheses. Findings from the study showed that company income tax has significant and negative effect on dividend per share of listed Deposit Money Banks in Nigeria. Education tax and Information Technology Tax have positive significant effect of dividend per share of listed Deposit Money Banks in Nigeria. The study therefore recommended that Deposit Money Banks (DMBs) should consider increasing investments in ICT infrastructure and technologies. This includes upgrading systems, enhancing cyber security measures, and adopting innovative digital banking solutions. By demonstrating a positive correlation between ICT investment and dividend pay-outs, banks can attract investors interested in technological advancements.