Faculty of Management Sciences, Federal University Otuoke
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Cletus O. AKENBOR & Kizzy Nkem MAFIANA
This research examined the impact of capital allowance on financial performance of quoted agribusinesses in Nigeria from 2005 - 2018 using five companies. The study adopted the longitudinal survey design. The study proxied capital allowance using initial allowance, annual allowance and investment allowance, while financial performance was measured using profit before tax (PBT) of the selected companies. The Ordinary Least Square (OLS) regression technique was used to analyze the behaviour of the variables. Our findings suggest a positive but non-significant relationship between initial allowance, annual allowance and financial performance of quoted agribusinesses in Nigeria. However, investment allowance has a positive and significant relationship with financial performance of quoted agribusinesses in Nigeria. The study therefore recommends that quoted agribusiness in Nigeria should be conducted and managed in compliance with applicable laws and regulations, supervisory requirements, internal policies and procedures, which are necessary for its survival and qualification for initial allowance; since many companies have experienced losses irrespective of the availability of tax incentives because it was not properly handled, qualified accountants must be engaged by agribusinesses to assist in the area of computation of all necessary capital allowances, especially annual allowance; agribusinesses should take great advantage of investment allowances as it encourages the acquisition and utilisation of machinery, equipment, and other qualifying non-current assets in productive activities among others; finally a unified reporting standard and guidelines be adopted in sustainability reporting of agribusinesses as this will help to enhance uniformity in reporting and comparison.
Editorial
Published: 7 June 2019
CAPITAL ALLOWANCE INCENTIVE AND FINANCIAL PERFORMANCE OF QUOTED AGRIBUSINESSES IN NIGERIA
41-52 (2019)
Abstract
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Affiliations
Department of Accounting, Federal University Otuoke, Bayelsa State
Cletus O. AKENBOR
Corresponding Author
Cletus O. AKENBOR
Cite this article
Cletus O. AKENBOR & Kizzy Nkem MAFIANA (2019). Capital Allowance Incentive and Financial Performance of Quoted Agribusinesses in Nigeria. Otuoke Journal of Management Sciences, 4(1) 41 - 52.
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Kizzy Nkem MAFIANA
Department of Economics and Development Studies, Federal University Otuoke, Bayelsa State