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Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute

Economics and Business

Quarterly Reviews

ISSN 2775-9237 (Online)

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
open access

Published: 12 August 2020

Dividend Policy and Corporate Financial Performance: Evidence from Selected Listed Consumer Goods Firms in Nigeria

Chukwuma C. Ugwu, Virginia N. Onyeka, Iyana E. Okwa

Federal University Wukari, Nigeria

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, management journal

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Pages: 1055-1065

Keywords: Dividend Policy, Financial Performance, Dividend Pay-Out Ratio, Earnings Per Share, Dividend Per Share


This study evaluated the dividend policy and corporate financial performance with evidence from selected listed consumer good firms in Nigeria within the period 2015-2019; using dividend pay-out ratio, earnings per share and dividend per share as proxies for dividend policy and Return on equity as proxy for financial performance with two control variables; firm size and financial leverage. The study employed correlation and ex-post facto research designs. Descriptive statistics and multiple regressions were used for data analysis. Secondary data were used, which were extracted from the Central Bank of Nigeria statistical bulletin and the Audited Annual Reports of the ten selected listed consumer goods firms in Nigeria. The results of the study show that dividend pay-out ratio; earnings per share and dividend per share are positively related to return on equity. It also revealed that dividend pay-out ratio and earnings per share were statistically insignificant with the return on equity while dividend per share was statistically significant with return on equity within the period of study. The study therefore recommends that firms should adopt a dividend policy strategy that will guarantee greater financial performance to improve on the dividend per share. It is also recommended that management should act in the best interest of the shareholders as this will go a long way in reducing agency problem. The implication of this finding is that if firms do not adopt a good dividend policy strategy that will benefit the shareholders, investors will lose interest in the firm and this will threaten the growth of some of these consumer goods firms in the future.


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