Tax Incentives and Liquidity Performance of Quoted Industrial Goods’ Firms in Nigeria

This study examined the effect of tax incentives on liquidity performance of quoted manufacturing firms in Nigeria Exchange Group. Expo-facto research design was adopted in the study. The population of the study comprised of 18 industrial goods firms listed in Nigeria Exchange Group from 2012 to 2021. The sample size of 10 firms was selected using purposive sampling technique. Data was obtained from secondary sources through the published financial statements of the companies. Data were analyzed through descriptive and inferential statistics. The result from the analysis of data revealed that tax savings had a significant and positive effect on liquidity performance of companies. The findings also from the study revealed that tax holyday has a negative and insignificant effect on companies’ liquidity performance. The study concluded that liquidity performance of quoted manufacturing firms improves at the instant of tax savings. It was therefore recommended that Nigerian government should provide adequate tax incentives for manufacturers in Nigeria in order to achieve the growth of infant manufacturing industries. Keywords:Tax savings, Tax holidays, Quick Ratio, liquidity Performance JEL Codes: H25, L25 DOI: 10.7176/EJBM/14-23-02 Publication date: December 31st 2022