Page 95 - CITN 2017 Journal

Jarque-Bera statistics of 2566.135 at p<0.01) indicates the normality of the distribution.
The Table 2 shows that Effective Tax Rate (ETR) a mean value of 20.78 which indicated
that the average Effective Tax Rate (ETR) of the sampled firms is 20.78% as against the
Statutory Tax Rate of 30% fixed in Company Income Tax Act 2004 (As Amended). The
standard deviation is 26.88%; the reason may be due to the fact that the data recognizes loss
after tax in the variable derivative. The skewness value for the variable sectors is -1.0648,
which signifies that the distribution for all sampled firms is skewed to the left; hence the
Effective Tax Rate value is reducing. Also, the kurtosis value, which is a measure of shape
of how tall and flat the normal curve of the distribution is 5.5734, which is above 3 that is
assumed for a normal distribution, signifies that the distribution is leptokurtic, since the
value is positive and meaning that the distribution is slender in terms of shape with a fatter
tails. Finally, the Jargue-Bera value is 232.457 at 0.00 level of significance. This implies
that the data is normally distributed since P<0.05.

As regards the explanatory variables in the model, the mean values of Leverage (LEV),
Profitability (ROA), Liquidity (LIQ), Growth Opportunities (MTB) and Capital Intensity
(CIN) were 0.1541, 0.0452, 0.1183, 12.545 and 0.3578 respectively. All the means are
within the range and above the median value. Considering the standard deviation of these
variables which measures the level of degree of dispersion of the variables from their
means, Leverage (LEV), Profitability (ROA), Liquidity (LIQ), Growth Opportunities
(MTB) and Capital Intensity (CIN) standard deviations were 0.1968, 0.1213, 0.2247,
14.2049 and 0.2338 respectively. Table 4.6 revealed that the most volatile of the
independent variables is Growth opportunities with a variation of 14.2%. The kurtosis
values of these explanatory variables were highly peaked (i.e leptokurtic) because the
values were above 3 that is assumed for a normal distribution except Capital Intensity
(CIN) with a value of 2.2033.

Table 2: Descriptive Analysis of the Variables

Source: Authors' Computation, 2015
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