Effect Of Tax Shield On The Profitability Of Quoted Companies In Nigeria:- Ihejirika, Olivia M

ABSTRACT

The study examined the effect of tax shield on the profitability of quoted brewery manufacturing firms in Nigeria, for the period of 2010 - 2015. The study employed the use of ex-post facto research design; Ordinary Least Square (OLS) was used in analyzing the data gotten from the financial statement ofthe firms under study. The study established that, long term debt has no significant effect on profitability offirms, as well as amortization cost. But, short term debt has a significance effect on profitability of firms. Therefore, this study recommends that, listed firms in Nigeria should adopt a corporate tax policy that uses debt financing because it improves the profitability offirms. Also, they should employ the use ofshort term debt financing than long term debt because it is more profitable to firms.