Universal Journal of Accounting and Finance Vol. 10(3), pp. 688 - 696
DOI: 10.13189/ujaf.2022.100306
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Effect of Taxation on Financial Performance of the African Aviation Industry


Samuel Adeniran Fakile 1,2, Tony Ikechukwu Nwanji 1,2, Ben-Caleb Egbide 1,2, Stephen Ojeka 3, Damilola Felix Eluyela 1,2,*
1 Landmark University SDG 8 (Decent Work and Economic Growth Group), Nigeria
2 Department of Accounting and Finance, Landmark University, Omu Aran, Nigeria
3 Department of Accounting, Covenant University, Ota, Nigeria

ABSTRACT

The African Airline Association recently reported that high airport charges and taxes are responsible for suppressing the evolution, development and growth of the African aviation industry. Therefore, the purpose of the study is to determine whether taxation metrics – tax planning, tax burden and after-tax earnings impact the financial performance of the African aviation industry, using the regression of various financial performance measures – profitability, liquidity, and going concerned. The panel data methodological approach was applied in this study. Descriptive statistics, correlation techniques, Hausman test, regression analysis and Granger Causality test result were presented. The study shows a positive relationship between tax planning and profitability, a positive relationship between tax burden and liquidity, and a positive relationship between tax charge and tax profits. This study concludes that taxation affects firms' financial performance in the African aviation industry.

KEYWORDS
African Aviation Industry, Financial performance, Tax Burden, Tax Planning

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Samuel Adeniran Fakile , Tony Ikechukwu Nwanji , Ben-Caleb Egbide , Stephen Ojeka , Damilola Felix Eluyela , "Effect of Taxation on Financial Performance of the African Aviation Industry," Universal Journal of Accounting and Finance, Vol. 10, No. 3, pp. 688 - 696, 2022. DOI: 10.13189/ujaf.2022.100306.

(b). APA Format:
Samuel Adeniran Fakile , Tony Ikechukwu Nwanji , Ben-Caleb Egbide , Stephen Ojeka , Damilola Felix Eluyela (2022). Effect of Taxation on Financial Performance of the African Aviation Industry. Universal Journal of Accounting and Finance, 10(3), 688 - 696. DOI: 10.13189/ujaf.2022.100306.