Abstract:

There has been a growing interest, both in academic and the business world, around the issue of taxation and to what extent it affects corporate investment. This study examines effects of taxation on corporate investment using Cadbury, Nestle and FIRS as case study.  To achieve this objective data was collected from primary and secondary sources.  Also, three hypotheses were formulated from the structure of research questions. T – Test and other statistical tools were used in testing these hypotheses, after data had been presented on both contingency table percentage and charts. The result provides empirical and archival document evidence such as taxation does effect on corporate investment, which went along with existing literatures. Managers place high priority on taxation matters before embarking on corporate investment, taking step like employing professionals to analysis tax considerations before investment decisions are taken. The research also went against conventional wisdom by stating, taxation also has positive effect on the company going against the common notion that it is only beneficial to the government. The research concluded with recommendations such as therefore corporation must have a flexible taxation policy in operation to enable them coupe with constant taxation review and policy change. For corporation to effectively face the effect of taxation  professionals not just on taxation but also areas like investment portfolio, law, resources  management should be engage by corporations, in order to meet any complexity or situation that may arise. This research ascertained the fact that taxation has effect on corporate investment and has contributed to the limited amount of research done in this area.