Abstract

In spite of the surfeit of the availability of the literature on the influence of company income tax on dividend pay-out in Nigeria, particularly after the adoption of the International Financial Reporting Standards (IFRSs). This study, therefore examined the influence of company income tax on dividend pay-out, providing evidence from listed consumers’ goods firms in Nigeria. To achieve the objective of this study, fifteen (15) listed firms were selected, using judgmental sampling technique. Secondary data, which covered years 2012 to 2019 were retrieved from audited financial reports of the quoted consumer goods firms. Based on the stationarity properties, these data were analysed using pooled, fixed and random effects of ordinary least square. Finding showed that company income tax does not significantly influence dividend payout of listed consumers’ goods firms in Nigeria (α=0.1578; p-value > 0.05), on the basis of which the study concluded that company income tax does not significantly influence dividend payout of listed consumers’ goods firms in Nigeria. Consequently, it was recommended that in order to improve the performances of listed consumer goods firms in Nigeria, and put them in a position to pay more dividends, enabling and favourable business climate should be envisaged, engineered and created, as doing this will increase their profitability. To increase company income tax rate would end up being counter-productive.