DETERMINANTS OF DIVIDEND POLICY IN QUOTED COMPANIES IN NIGERIA

Odesa Jeff Ogheneochuko, Ekezie Abigirl

Abstract


This study Determinants of Dividend Policy of Quoted Companies in Nigeria examined the factors which determine the dividend policy of quoted companies. The study uses a cross sectional data from 131 quoted companies in Nigeria. Five objectives were studied. A descriptive and ex-post facto research design and Descriptive, correlation and regression analysis were employed to test the relationship between the variables. The result reveals that investment opportunity is negatively related to dividend policy while debt, ROE, shareholder structure, and last dividend paid have a positive significant relationship with dividend policy. Based on the analysis result and findings, the study recommended among others that managers should pay more attention to profit, total debt, shareholder structure and last dividend paid in formulating dividend policy as this will help reduce principal-agent conflict and payment, which will enhance the value of the firm.

Full Text:

PDF

References


Ajanthan, A. (2013) The relationship between dividend payout and firm profitability: A study of listed hotels and restaurant companies in Sri Lanka. International Journal of Scientific and Research Publications, 3(6), June 2013.

Alii, K, Khan Q. & Ramirez, G (1993) Determinants of corporate dividend policy: A factorial analysis. Financial Review, 28: 523-47.

Amidu. M. & Abor E. (2007). How does Dividend Policy affect performance of the Firm on Ghana Stock Exchange. Investment Management and Financial Innovations, 4(2), 104 - 112.

Arnott, D. R., & Asness, S. (2003). Surprise higher dividends is higher earnings growth. Financial Analyst Journal, 70 87.

Baiman, S. (1982,.). Agency research in y1anaceria accounting: A Survey. Journal of Accounting Literature. 1, 154-213.

Baker. H. K., & Powell, G. E. (1999). How corporate managers view Dividend Policy? Quarterly European Scientific Journal May edition vol. 8, No.9 ISSN: 1857- 7881 (Print) e - ISSN 1857- 7431 214.

Baker, H. K., Veit, E.T., & Powell, 0. E. (2001). Factors influencing Dividend Policy decisions of Nasdaq Firms. The Financial Review, 36(3), 19-3 7. Journal of Business and Economics, 38(2,), 17-27.

Baker. K. & Powell, G. (2005). Understanding Financial Management. Blackwell Publishing.

Baker, K., Veit. E. & Powell, 0. (1995) Factors influencing Dividend Policy, Business & Finance, 5: 97-1 11

Dhanani, A. (2005). Corporate Dividend Policy: The views of British Financial Managers. Journal of Business Finance & Accounting, 37(7) & (8), 1625 - 1672.

Du Bois C (2007). Role des conflits dagence, de la structure dactionnariat et des mcanismes de gouvernance sur les politiques de distribution : application aux decisions de dividende et de rachat dactions des socits francaises cotes. These de Doctorat s Sciences de Gestion. Universit

Paul Czane, AixMarseille III- I,A.E, sous la direction de P. BATTEAU.

Farsio, F., Geary, A.. & Moser, J. (2004). The Relationship between dividends and earnings. Journal for Economic Educators, 4(4), 1 - 5.

Foong, S., Zakaria, N. & Tan, H. (2007) Firm performance and dividend- related factors: The case of Malaysia. Labuan Bulletin of International Business & Finance, 5: 97-111.

Frankfurter, G., & McGoun, E. (2000). Thought contagion and financial economics: The dividend puzzle as a case study. The Journal of Psychology and Financial Markets, 1(2), 145 - 153.

Goffin. R. (2001). Principe de la finance moderne. 3rd d Economica.

Howatt. B.(2009). Dividends, earnings volatility and information. Applied Financial Economics, 19(7), 551 - 562.

Jensen. & Michael., (1986) Agency costs of free cash flow, corporate finance, and the market for takeovers, American Economics Review, pp. 323-329.

La Poila, R. F,, Lopez-De-Silanes, A., Shleifer. & Vishriy, R. (2000), Agency Problems and Dividend Policy around the World, Journal of Finance, pp.1-33.

Lie, E. (2005). Financial flexibility, performance, and the corporate payout choice. The Journal of Business, 78(6). 2179 - 2202.

Mat Nor F, Sulong Z (2007). The interaction effect of ownership structure and board governance on dividends: Evidence from Malaysian listed firms. Capital Market Rev. 15:73-101.

Miller. M., & Modigliani, F. (1961). Dividend policy, growth, and the valuation of shares, Journal of Business 34, 411-433. 10.1086/294442, http.//dx.doi.org/10. 1086/29444.

Miller, S & Rock K.. (1995) Dividend policy and behavior in emerging markets, Ifc Research Forum, pp.91-101.

Mizuno, M. (2007). Payout policy of japanese firms: Analysis on the survey of four industries listed on the Tokyo Stock Exchange. Pacific Economic Review, 12(5), 631 - 650.

Moussu C. & Thibierge C. (1996). Politique financire, opportunits dinvestissement, et actifs incorporels en Europe: thdorie et tude empirique. Cahier de recherch ESCP N96-129.

Myers, S.(1984), The capital structure puzzle. Journal of Finance. 39, pp. 572-592.

Nicholas, O. & Osahro, O. (2009) Determinant of dividend policy of listed manufacturing companies in Nigeria.

Nissim, D. & Ziv. D. (2001) Dividend changes and future profitability. Journal of Finance, vol 56 (6): 2111-2133.

Nivoix S (2004). Endettement et distribution du dividende dans les entreprises japonaises. Publication de recherche en ligne, www.iae.univ-poitiers.fr pp.1-13.

Nwosu, C. (2008). Determinant of dividend payout of quoted companies in Nigerian stock exchange. Journal of economic and finance 3(2) pp. 211-224

Omran, M., & Pointon, J. (2004). Dividend policy. trading characteristics and share prices: Empirical evidence from Egyptian firms. International Journal of Theoretical and Applied Finance, 7(2), 121 - 133.

Pandey, I. M. (2003). Corporate dividend policy and behavior the Malaysian evidence. Asian Academy of Management Journal. 8(1). 17 - 32.

Pandey, I.M. (2005). Financial Management (9th Ed.). New Delhi: Vikas publishing House Pvt Limited. Related Factors: The Case of Malaysia.

Ross, A., Westerfield, W. & Jaffe, J. (2002) Corporate Finance (6th ed.), Shares Vikas publishing House Pvt Limited. Related Factors:

Rozeff, MS (1982), Growth, beta and agency costs as determinants of dividend payout ratios, The Journal of Financial Research, Vol. 5, pp. 249 - 259.

Rufus A. & Soyoye L.(2014) Determinants of dividend payout in the Nigerian banking industry. Proceedings of 9th Annual London Business Research Conference 4 - 5 August 2014, Imperial College, London, UK,

Stulz, R. M. (2000). Merton Miller and modern finance. Financial Management, 29(4), 119-131.

Walter, JE (1956), Dividend policies and common stock prices, Journal of Finance, March, 29-41.

Zhou, P. & Ruland, W. (2006). Dividend payout and future earnings growth. Financial Analysts Journal, 62(3), 58 - 69.


Refbacks

  • There are currently no refbacks.


(c)Rex Commpan Publishing Group