Deferred Tax Accounting and Financial Performance: The Listed Agricultural Firms Perspective in Nigeria

Nwaorgu, I.A., Abiahu, M.C. & Iormbagah, J.A. (2019. August). Deferred Tax Accounting and Financial Performance: The Listed Agricultural Firms’ Perspective in Nigeria. In Dandago, K.I., Salawu, R.O., Akintoye, R.I. & Oyedokun, G.E. (Eds.)

16 Pages Posted: 4 Nov 2019 Last revised: 18 Jun 2020

See all articles by Innocent Augustine Nwaorgu

Innocent Augustine Nwaorgu

Michael Okpara University of Agriculture - Department of Accounting

Mary-Fidelis Chidoziem Abiahu

CIBN Centre for Financial Studies

Arzizeh T. Tapang

Accounting Department, Michael Okpara University of Agriculture Umudike, Abia State

Jacob Aondohemba Iormbagah

Department of Accounting, College of Management Sciences, Michael Okpara University of Agriculture Umudike, Umuahia, Abia State, Nigeria

Date Written: December 30, 2019

Abstract

The study examined the effect of deferred tax accounting on financial performance of listed agricultural firms in Nigeria. The study employed ex post facto research design using data from 4 quoted agricultural firms. The data span across 7 years ranging from 2011-2017 and were analyzed using simple linear regression. Findings from the study revealed that deferred tax accounting has a positive and significant relationship with the profitability of the listed firms. Further findings revealed that deferred tax has no statistical significant effect on both the cash flow and earnings per share of the listed agricultural firms in Nigeria Hence, based on the results obtained from this study it is recommended that; Firms in Nigeria should make tax planning as part of the firm’s strategic financial planning by employing effective accounting for deferred tax due the complexity of current accounting standard for deferred tax. Also the firms should effectively utilize all-inclusive tax planning strategies available in order to further influence their financial performance positively. Finally the study recommends that due to the complexity of accounting for deferred tax by firms in Nigeria, accounting standard developers should come up with a clear and precise rule for deferred tax accounting that will enable uniformity and seamless accounting for deferred tax by all firms.

Keywords: Cash-Flow From Operations, Deferred Tax Liability, Earnings per Share, Profit After Tax

JEL Classification: M40

Suggested Citation

Nwaorgu, Innocent Augustine and Abiahu, Mary-Fidelis Chidoziem and Tapang, Arzizeh T. and Iormbagah, Jacob Aondohemba, Deferred Tax Accounting and Financial Performance: The Listed Agricultural Firms Perspective in Nigeria (December 30, 2019). Nwaorgu, I.A., Abiahu, M.C. & Iormbagah, J.A. (2019. August). Deferred Tax Accounting and Financial Performance: The Listed Agricultural Firms’ Perspective in Nigeria. In Dandago, K.I., Salawu, R.O., Akintoye, R.I. & Oyedokun, G.E. (Eds.) , Available at SSRN: https://ssrn.com/abstract=3474769 or http://dx.doi.org/10.2139/ssrn.3474769

Innocent Augustine Nwaorgu

Michael Okpara University of Agriculture - Department of Accounting ( email )

Umuahia-Ikot Ekpene Road
PMB 7267
Umudike, Abia State 440001
Nigeria

Mary-Fidelis Chidoziem Abiahu (Contact Author)

CIBN Centre for Financial Studies ( email )

Arzizeh T. Tapang

Accounting Department, Michael Okpara University of Agriculture Umudike, Abia State

Umudike
Umuahia, Abia State
Nigeria

Jacob Aondohemba Iormbagah

Department of Accounting, College of Management Sciences, Michael Okpara University of Agriculture Umudike, Umuahia, Abia State, Nigeria ( email )

Umudike
Umuahia, Abia State
Nigeria

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