THE INFLUENCE OF GOVERNMENT FISCAL POLICY ON FINANCIAL PERFORMANCE OF NIGERIAN MULTINATIONAL CORPORATIONS

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Ngwa Christian Ugonna Ph.D
Ojeh Augustine, Ph.D., FCA
Amaechi, Marcellus Chukwu Ph.D
Festus Ndubuisi Nkwo
Edeh, Ijeoma Thelma

Abstract

This study investigated the impact of government fiscal policy on the financial performance of multinational corporations in Nigeria. The research focuses on examining the influence of taxation, public expenditure, and fiscal policy stability on corporate profitability, as well as exploring strategies for aligning fiscal policies with business operational needs. Data was collected through a survey of 133 respondents from multinational corporations operating in Nigeria. The findings reveal that a significant proportion of respondents (30.08%) reported no impact from taxation policies, while 21.05% observed a positive effect. Public expenditure was seen as having a positive influence, with 41.35% recognizing its beneficial impact. Regarding fiscal policy stability, 43.61% of respondents reported a strongly positive relationship with profitability, emphasizing its importance for financial forecasting and decision-making. Additionally, the survey highlighted the crucial role of aligning fiscal policies with corporate needs, with 57.14% of respondents considering this alignment very important for both financial performance and national economic growth. The study recommends fostering collaboration between the government and businesses, ensuring fiscal policy stability, and introducing tailored fiscal incentives to enhance corporate performance and contribute to Nigeria’s economic development

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Published: Jan 21, 2025
Keywords:
Government fiscal policy, financial performance, multinational corporations, taxation, public expenditure, fiscal policy stability
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Cite This Paper
Ngwa, C. U., Ojeh , A., Chukwu , A. M., Festus, N. N., & Edeh, I. T. (2025). THE INFLUENCE OF GOVERNMENT FISCAL POLICY ON FINANCIAL PERFORMANCE OF NIGERIAN MULTINATIONAL CORPORATIONS. Research Journal of Accounting and Entrepreneurship, 13(1), 1–21. Retrieved from https://hollexpub.org/J/index.php/19/article/view/1104

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