Determinants of Dividend Policy of Listed Consumer Goods Companies in Nigeria

Abstract

Abstract

This study examined the determinants of dividend policy of listed consumer goods firms in Nigeria. Ex-post facto research design was employed on a sample of nine (9) listed consumer goods firms in Nigeria for a period of five (5) years (2015-2019). Ordinary Pool Regression technique was used in the analysis of the panel secondary data extracted from annual reports of sample listed consumer goods for a five-year study period (2015-2019). The study found that business risk has significant positive impact on dividend policy of listed consumer goods firms in Nigeria. The study also found that life cycle has significant positive influence on dividend policy. In addition, the study found that tangibility has a negative significant effect on dividend policy of listed consumer goods firms in Nigeria. The study, therefore, recommends that the managers should consider the major determinants of dividend payout ratio while formulating the appropriate dividend policy for a firm. Considering the nature of the companies on the basis of payment of dividends the investors can choose the companies for better investment.